Why is Leshan Electric Power Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.95%
- The company has been able to generate a Return on Capital Employed (avg) of 2.95% signifying low profitability per unit of total capital (equity and debt)
2
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 7.78% and Operating profit at -31.90% 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 3.58% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 7.78% and Operating profit at -31.90% over the last 5 years
- CASH AND EQV(HY) Highest at CNY 511.63 MM
- DEBT-EQUITY RATIO (HY) Lowest at 0 %
- PRE-TAX PROFIT(Q) At CNY 13.87 MM has Grown at 64.24%
4
With ROE of 0.96%, it has a expensive valuation with a 2.93 Price to Book Value
- Over the past year, while the stock has generated a return of 44.60%, its profits have fallen by -12.1%
How much should you hold?
- Overall Portfolio exposure to Leshan Electric Power Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Power should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Leshan Electric Power Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Leshan Electric Power Co., Ltd.
44.6%
0.72
58.75%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
7.78%
EBIT Growth (5y)
-31.90%
EBIT to Interest (avg)
1.88
Debt to EBITDA (avg)
3.24
Net Debt to Equity (avg)
0.27
Sales to Capital Employed (avg)
1.03
Tax Ratio
73.35%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.95%
ROE (avg)
3.58%
Valuation Key Factors 
Factor
Value
P/E Ratio
305
Industry P/E
Price to Book Value
2.93
EV to EBIT
353.47
EV to EBITDA
31.38
EV to Capital Employed
2.51
EV to Sales
2.05
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
0.71%
ROE (Latest)
0.96%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
3What is working for the Company
CASH AND EQV(HY)
Highest at CNY 511.63 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 0 %
PRE-TAX PROFIT(Q)
At CNY 13.87 MM has Grown at 64.24%
-4What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 107.8% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 0%
DEBTORS TURNOVER RATIO(HY)
Lowest at 0%
NET PROFIT(Q)
Fallen at -30.38%
Here's what is working for Leshan Electric Power Co., Ltd.
Pre-Tax Profit
At CNY 13.87 MM has Grown at 64.24%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Cash and Eqv
Highest at CNY 511.63 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 0 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Leshan Electric Power Co., Ltd.
Net Profit
Fallen at -30.38%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Inventory Turnover Ratio
Lowest at 0%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 0%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 107.8% (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






