Why is Offshore Oil Engineering Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 10.88%
- The company has been able to generate a Return on Capital Employed (avg) of 10.88% signifying low profitability per unit of total capital (equity and debt)
- INTEREST(HY) At CNY 11.23 MM has Grown at 168.17%
- NET SALES(HY) At CNY 11,215.19 MM has Grown at -16.06%
- OPERATING CASH FLOW(Y) Lowest at CNY 3,664.64 MM
2
With ROE of 7.51%, it has a fair valuation with a 0.87 Price to Book Value
- Over the past year, while the stock has generated a return of 2.57%, its profits have risen by 12% ; the PEG ratio of the company is 1
- At the current price, the company has a high dividend yield of 3.8
3
Underperformed the market in the last 1 year
- The stock has generated a return of 2.57% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%
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 Construction)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Offshore Oil Engineering Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Offshore Oil Engineering Co., Ltd.
2.57%
-0.35
23.64%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
10.80%
EBIT Growth (5y)
28.42%
EBIT to Interest (avg)
78.26
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.64
Sales to Capital Employed (avg)
1.16
Tax Ratio
17.80%
Dividend Payout Ratio
41.12%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.88%
ROE (avg)
5.29%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
0.87
EV to EBIT
3.10
EV to EBITDA
1.75
EV to Capital Employed
0.66
EV to Sales
0.23
PEG Ratio
0.97
Dividend Yield
3.84%
ROCE (Latest)
21.30%
ROE (Latest)
7.51%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -43.55% (YoY
CASH AND EQV(HY)
Highest at CNY 35,224.58 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -61.04 %
OPERATING PROFIT(Q)
Highest at CNY 996.04 MM
-19What is not working for the Company
INTEREST(HY)
At CNY 11.23 MM has Grown at 168.17%
NET SALES(HY)
At CNY 11,215.19 MM has Grown at -16.06%
OPERATING CASH FLOW(Y)
Lowest at CNY 3,664.64 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.79%
Here's what is working for Offshore Oil Engineering Co., Ltd.
Operating Profit
Highest at CNY 996.04 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Cash and Eqv
Highest at CNY 35,224.58 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -61.04 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -43.55% (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 Offshore Oil Engineering Co., Ltd.
Interest
At CNY 11.23 MM has Grown at 168.17%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Sales
At CNY 6,152.47 MM has Fallen at -20.28%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Operating Cash Flow
Lowest at CNY 3,664.64 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Debtors Turnover Ratio
Lowest at 2.79%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






