Hunan Corun New Energy Co., Ltd. (600478) 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

Hunan Corun New Energy Co., Ltd.

Why is Hunan Corun New Energy Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.19%

The company has been able to generate a Return on Capital Employed (avg) of 1.19% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 13.02% and Operating profit at 22.27% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 2.62% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 13.02% and Operating profit at 22.27% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

PRE-TAX PROFIT(Q) At CNY 40.86 MM has Grown at 244.07%
ROCE(HY) Highest at 6.75%
RAW MATERIAL COST(Y) Fallen by -71.1% (YoY)

With ROE of 2.46%, it has a expensive valuation with a 3.69 Price to Book Value

Over the past year, while the stock has generated a return of 51.28%, its profits have risen by 151.4% ; the PEG ratio of the company is 1
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 Industrial Manufacturing)

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

Is Hunan Corun New Energy Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Corun New Energy Co., Ltd.

20.72%

2.17

42.15%

China Shanghai Composite

20.75%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.23%

EBIT Growth (5y)

32.32%

EBIT to Interest (avg)

0.26

Debt to EBITDA (avg)

9.58

Net Debt to Equity (avg)

1.11

Sales to Capital Employed (avg)

0.53

Tax Ratio

38.92%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.19%

ROE (avg)

2.62%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

139

Industry P/E

Price to Book Value

3.09

EV to EBIT

58.04

EV to EBITDA

28.85

EV to Capital Employed

1.93

EV to Sales

2.20

PEG Ratio

7.14

Dividend Yield

ROCE (Latest)

3.33%

ROE (Latest)

2.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

14What is working for the Company

NET SALES(HY)

At CNY 3,568.09 MM has Grown at 51.15%

PRE-TAX PROFIT(Q)

At CNY 31.39 MM has Grown at 502.58%

RAW MATERIAL COST(Y)

Fallen by -19.76% (YoY

NET PROFIT(9M)

Higher at CNY 129.18 MM

CASH AND EQV(HY)

Highest at CNY 5,710.71 MM

-19What is not working for the Company

NET PROFIT(HY)

At CNY 46.64 MM has Grown at -49.97%

INTEREST(HY)

At CNY 104.06 MM has Grown at 24.36%

INTEREST COVERAGE RATIO(Q)

Lowest at 191.99

DEBT-EQUITY RATIO (HY)

Highest at 125 %

OPERATING PROFIT(Q)

Lowest at CNY 67.46 MM

Here's what is working for Hunan Corun New Energy Co., Ltd.

Pre-Tax Profit

At CNY 31.39 MM has Grown at 502.58%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 3,568.09 MM has Grown at 51.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 5,710.71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -19.76% (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 Hunan Corun New Energy Co., Ltd.

Net Profit

At CNY 46.64 MM has Grown at -49.97%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 104.06 MM has Grown at 24.36%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 191.99

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 67.46 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Debt-Equity Ratio

Highest at 125 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio