Hubei Heyuan Gas Co., Ltd. (002971) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hubei Heyuan Gas Co., Ltd.

Why is Hubei Heyuan Gas Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 6.02%

Poor long term growth as Net Sales has grown by an annual rate of 12.82% and Operating profit at 0.91% over the last 5 years
The company is Net-Debt Free

The company has declared Negative results for the last 9 consecutive quarters

ROCE(HY) Lowest at 3.14%
INTEREST(Q) At CNY 18.95 MM has Grown at 22.55%
INTEREST COVERAGE RATIO(Q) Lowest at 180.54

With ROE of 3.23%, it has a very expensive valuation with a 2.31 Price to Book Value

Over the past year, while the stock has generated a return of 250.24%, its profits have fallen by -14.7%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hubei Heyuan Gas Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hubei Heyuan Gas Co., Ltd.

226.32%

4.57

59.66%

China Shanghai Composite

20.18%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.82%

EBIT Growth (5y)

0.91%

EBIT to Interest (avg)

3.20

Debt to EBITDA (avg)

4.15

Net Debt to Equity (avg)

1.04

Sales to Capital Employed (avg)

0.49

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

17.24%

Pledged Shares

Institutional Holding

ROCE (avg)

6.02%

ROE (avg)

6.80%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.31

EV to EBIT

52.91

EV to EBITDA

25.36

EV to Capital Employed

1.59

EV to Sales

3.75

PEG Ratio

Dividend Yield

ROCE (Latest)

3.01%

ROE (Latest)

3.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 227.16 MM

RAW MATERIAL COST(Y)

Fallen by -9.95% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 199.85 %

-24What is not working for the Company

ROCE(HY)

Lowest at 3.14%

INTEREST(Q)

At CNY 18.95 MM has Grown at 22.55%

INTEREST COVERAGE RATIO(Q)

Lowest at 180.54

OPERATING PROFIT MARGIN(Q)

Lowest at 8.73 %

OPERATING PROFIT(Q)

Lowest at CNY 34.2 MM

PRE-TAX PROFIT(Q)

Fallen at -27.04%

NET PROFIT(Q)

Fallen at -28.39%

Here's what is working for Hubei Heyuan Gas Co., Ltd.

Operating Cash Flow

Highest at CNY 227.16 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at 199.85 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -9.95% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Hubei Heyuan Gas Co., Ltd.

Interest

At CNY 18.95 MM has Grown at 22.55%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 180.54

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 8.73 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 34.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Fallen at -27.04%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -28.39%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)