Inner Mongolia Mengdian Huaneng Thermal Power Corp. Ltd. (600863) 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

Inner Mongolia Mengdian Huaneng Thermal Power Corp. Ltd.

Why is Inner Mongolia Mengdian Huaneng Thermal Power Corp. Ltd. ?

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 6.60% and Operating profit at 9.36% 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 10.10% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.60% and Operating profit at 9.36% over the last 5 years

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 5,363.04 MM
NET SALES(9M) At CNY 15,051.97 MM has Grown at -9.23%
ROCE(HY) Lowest at 12.14%

With ROE of 14.21%, it has a very expensive valuation with a 1.60 Price to Book Value

Over the past year, while the stock has generated a return of 38.92%, its profits have risen by 5.1% ; the PEG ratio of the company is 2.2
At the current price, the company has a high dividend yield of 5.4

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 Power)

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

Is Inner Mongolia Mengdian Huaneng Thermal Power Corp. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Inner Mongolia Mengdian Huaneng Thermal Power Corp. Ltd.

18.55%

0.41

20.09%

China Shanghai Composite

19.22%

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)

5.75%

EBIT Growth (5y)

24.29%

EBIT to Interest (avg)

5.83

Debt to EBITDA (avg)

3.18

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

0.71

Tax Ratio

19.77%

Dividend Payout Ratio

57.59%

Pledged Shares

Institutional Holding

ROCE (avg)

7.93%

ROE (avg)

10.10%

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

1.89

EV to EBIT

14.54

EV to EBITDA

9.36

EV to Capital Employed

1.53

EV to Sales

2.59

PEG Ratio

Dividend Yield

3.63%

ROCE (Latest)

10.53%

ROE (Latest)

15.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-12What is not working for the Company

NET PROFIT(HY)

At CNY 993.66 MM has Grown at -25.83%

OPERATING PROFIT MARGIN(Q)

Lowest at 20.72 %

RAW MATERIAL COST(Y)

Grown by 14.64% (YoY

NET SALES(Q)

Lowest at CNY 4,707.56 MM

OPERATING PROFIT(Q)

Lowest at CNY 975.38 MM

Here's what is not working for Inner Mongolia Mengdian Huaneng Thermal Power Corp. Ltd.

Operating Profit Margin

Lowest at 20.72 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 993.66 MM has Grown at -25.83%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 4,707.56 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 4,707.56 MM has Fallen at -10.55%

over average net sales of the previous four periods of CNY 5,262.62 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 975.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Raw Material Cost

Grown by 14.64% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales