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

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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 7.00% and Operating profit at 9.03% 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 7.00% and Operating profit at 9.03% over the last 5 years

Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at CNY 3,688.98 MM
NET PROFIT(HY) At CNY 1,374.62 MM has Grown at -22.23%
ROCE(HY) Lowest at 11.31%

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 12.06%, 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.

12.06%

0.08

19.91%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.00%

EBIT Growth (5y)

9.03%

EBIT to Interest (avg)

5.83

Debt to EBITDA (avg)

3.18

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

0.70

Tax Ratio

19.77%

Dividend Payout Ratio

61.76%

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

1.60

EV to EBIT

12.88

EV to EBITDA

6.63

EV to Capital Employed

1.35

EV to Sales

1.87

PEG Ratio

2.21

Dividend Yield

5.39%

ROCE (Latest)

10.52%

ROE (Latest)

14.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

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

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DEBT-EQUITY RATIO (HY)

Lowest at 0 %

PRE-TAX PROFIT(Q)

Highest at CNY 1,197.08 MM

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 3,688.98 MM

NET PROFIT(HY)

At CNY 1,374.62 MM has Grown at -22.23%

ROCE(HY)

Lowest at 11.31%

RAW MATERIAL COST(Y)

Grown by 105.91% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0%

NET SALES(Q)

Lowest at CNY 4,774.74 MM

Here's what is working for Inner Mongolia Mengdian Huaneng Thermal Power Corp. Ltd.

Pre-Tax Profit

Highest at CNY 1,197.08 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 1,197.08 MM has Grown at 89.55%

over average net sales of the previous four periods of CNY 631.54 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Lowest at 0 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

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

Operating Cash Flow

Lowest at CNY 3,688.98 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Profit

At CNY 1,374.62 MM has Grown at -22.23%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 4,774.74 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 4,774.74 MM has Fallen at -8.63%

over average net sales of the previous four periods of CNY 5,225.89 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 105.91% (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