Shaanxi Coal Industry Co., Ltd. (601225) 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

Shaanxi Coal Industry Co., Ltd.

Why is Shaanxi Coal Industry Co., Ltd. ?

With a fall in Net Profit of -7.1%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
NET PROFIT(HY) At CNY 7,723.22 MM has Grown at -36.82%
OPERATING CASH FLOW(Y) Lowest at CNY 41,184.73 MM
INTEREST(Q) At CNY 130.82 MM has Grown at 20.24%

With ROE of 34.49%, it has a very attractive valuation with a 2.21 Price to Book Value

Over the past year, while the stock has generated a return of 32.83%, its profits have fallen by -16.4%
At the current price, the company has a high dividend yield of 6.8

Majority shareholders : Non Institution

Market Beating performance in long term as well as near term

Along with generating 32.83% 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 hold?

Overall Portfolio exposure to Shaanxi Coal Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Shaanxi Coal Industry Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shaanxi Coal Industry Co., Ltd.

33.47%

-0.18

29.90%

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)

15.30%

EBIT Growth (5y)

16.24%

EBIT to Interest (avg)

90.86

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

1.72

Tax Ratio

18.31%

Dividend Payout Ratio

58.45%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

84.26%

ROE (avg)

39.40%

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

2.21

EV to EBIT

5.47

EV to EBITDA

3.86

EV to Capital Employed

2.37

EV to Sales

1.11

PEG Ratio

Dividend Yield

6.83%

ROCE (Latest)

43.38%

ROE (Latest)

34.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly 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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 29.26 times

-22What is not working for the Company

NET PROFIT(HY)

At CNY 7,723.22 MM has Grown at -36.82%

OPERATING CASH FLOW(Y)

Lowest at CNY 41,184.73 MM

INTEREST(Q)

At CNY 130.82 MM has Grown at 20.24%

RAW MATERIAL COST(Y)

Grown by 13.28% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -16.22 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 29.47 times

NET SALES(Q)

At CNY 40,100.41 MM has Fallen at -11.51%

OPERATING PROFIT(Q)

Lowest at CNY 7,361.12 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 18.36 %

Here's what is working for Shaanxi Coal Industry Co., Ltd.

Inventory Turnover Ratio

Highest at 29.26 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 Shaanxi Coal Industry Co., Ltd.

Net Profit

At CNY 7,723.22 MM has Grown at -36.82%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 130.82 MM has Grown at 20.24%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 41,184.73 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 40,100.41 MM has Fallen at -11.51%

over average net sales of the previous four periods of CNY 45,315.52 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 7,361.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 18.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -16.22 %

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 29.47 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 13.28% (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

Non Operating Income

Highest at CNY 0.12 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income