Risen Energy Co., Ltd. (300118) 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

Risen Energy Co., Ltd.

Why is Risen Energy Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.00%

The company has been able to generate a Return on Capital Employed (avg) of 2.00% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -5.59% and Operating profit at -291.06% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.86% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -5.59% and Operating profit at -291.06% over the last 5 years

Flat results in Mar 26

NET SALES(HY) At CNY 4,819.4 MM has Grown at -42.12%
ROCE(HY) Lowest at -29.94%
NET PROFIT(Q) At CNY -359.81 MM has Fallen at -38.96%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 37.95%, its profits have risen by 14.6%
At the current price, the company has a high dividend yield of 0

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 Other Electrical Equipment)

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

Is Risen Energy Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Risen Energy Co., Ltd.

33.12%

-0.08

67.53%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.59%

EBIT Growth (5y)

-291.06%

EBIT to Interest (avg)

-0.61

Debt to EBITDA (avg)

3.44

Net Debt to Equity (avg)

1.00

Sales to Capital Employed (avg)

0.74

Tax Ratio

14.22%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.00%

ROE (avg)

2.86%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.45

EV to EBIT

-7.58

EV to EBITDA

-16.13

EV to Capital Employed

1.20

EV to Sales

1.80

PEG Ratio

Dividend Yield

ROCE (Latest)

-15.87%

ROE (Latest)

-35.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,535 MM

NET PROFIT(HY)

Higher at CNY -2,255.55 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.25 times

-17What is not working for the Company

NET SALES(HY)

At CNY 4,819.4 MM has Grown at -42.12%

ROCE(HY)

Lowest at -29.94%

NET PROFIT(Q)

At CNY -359.81 MM has Fallen at -38.96%

RAW MATERIAL COST(Y)

Grown by 20.31% (YoY

CASH AND EQV(HY)

Lowest at CNY 5,142 MM

DEBT-EQUITY RATIO (HY)

Highest at 147.2 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.71 times

PRE-TAX PROFIT(Q)

Fallen at -37.26%

Here's what is working for Risen Energy Co., Ltd.

Operating Cash Flow

Highest at CNY 1,535 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)

Inventory Turnover Ratio

Highest at 5.25 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Risen Energy Co., Ltd.

Net Sales

At CNY 4,819.4 MM has Grown at -42.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Profit

At CNY -359.81 MM has Fallen at -38.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Pre-Tax Profit

Fallen at -37.26%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 5,142 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 147.2 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 2.71 times

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 20.31% (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