Ningxia Baofeng Energy Group Co., Ltd. (600989) 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

Ningxia Baofeng Energy Group Co., Ltd.

Why is Ningxia Baofeng Energy Group Co., Ltd. ?

Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 16,699.88 MM
NET PROFIT(HY) At CNY 6,513.17 MM has Grown at 109.03%
ROCE(HY) Highest at 24.62%

With ROE of 19.57%, it has a very attractive valuation with a 2.74 Price to Book Value

Over the past year, while the stock has generated a return of 67.90%, its profits have risen by 30.6% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 4.4

Market Beating performance in long term as well as near term

Along with generating 67.90% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Ningxia Baofeng Energy Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ningxia Baofeng Energy Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ningxia Baofeng Energy Group Co., Ltd.

79.41%

2.09

35.46%

China Shanghai Composite

13.33%

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)

23.96%

EBIT Growth (5y)

20.52%

EBIT to Interest (avg)

34.65

Debt to EBITDA (avg)

1.49

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

0.49

Tax Ratio

12.94%

Dividend Payout Ratio

52.85%

Pledged Shares

Institutional Holding

ROCE (avg)

17.06%

ROE (avg)

17.85%

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

2.74

EV to EBIT

13.44

EV to EBITDA

10.87

EV to Capital Employed

2.09

EV to Sales

3.82

PEG Ratio

0.46

Dividend Yield

4.44%

ROCE (Latest)

15.55%

ROE (Latest)

19.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

No Trend

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

25What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 16,699.88 MM

NET PROFIT(HY)

At CNY 6,513.17 MM has Grown at 109.03%

ROCE(HY)

Highest at 24.62%

NET SALES(Q)

Highest at CNY 12,725.34 MM

PRE-TAX PROFIT(Q)

Highest at CNY 3,658.4 MM

RAW MATERIAL COST(Y)

Fallen by -12.81% (YoY

-12What is not working for the Company

INTEREST(HY)

At CNY 457.88 MM has Grown at 11.84%

DEBTORS TURNOVER RATIO(HY)

Lowest at 68.69 times

OPERATING PROFIT MARGIN(Q)

Lowest at 31.96 %

Here's what is working for Ningxia Baofeng Energy Group Co., Ltd.

Net Profit

At CNY 6,513.17 MM has Grown at 109.03%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 16,699.88 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)

Net Sales

Highest at CNY 12,725.34 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 3,658.4 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 12,725.34 MM has Grown at 30.83%

over average net sales of the previous four periods of CNY 9,726.32 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -12.81% (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 Ningxia Baofeng Energy Group Co., Ltd.

Interest

At CNY 457.88 MM has Grown at 11.84%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 31.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 68.69 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio