Shandong Xinchao Energy Corp. Ltd. (600777) 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

Shandong Xinchao Energy Corp. Ltd.

Why is Shandong Xinchao Energy Corp. Ltd. ?

Poor Management Efficiency with a low ROCE of 10.39%

The company has been able to generate a Return on Capital Employed (avg) of 10.39% 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 12.42% and Operating profit at 18.56% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 8.01% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.42% and Operating profit at 18.56% over the last 5 years

The company has declared negative results for the last 5 consecutive quarters

NET SALES(HY) At CNY 3,117.83 MM has Grown at -19.19%
NET PROFIT(HY) At CNY 329.59 MM has Grown at -65.59%
INTEREST(HY) At CNY 242.35 MM has Grown at 57.06%

With ROE of 3.42%, it has a fair valuation with a 1.42 Price to Book Value

Over the past year, while the stock has generated a return of 5.50%, its profits have fallen by -62.3%

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 Oil)

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

Is Shandong Xinchao Energy Corp. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shandong Xinchao Energy Corp. Ltd.

5.5%

2.10

41.29%

China Shanghai Composite

3.23%

0.22

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.42%

EBIT Growth (5y)

18.56%

EBIT to Interest (avg)

6.82

Debt to EBITDA (avg)

0.81

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

0.29

Tax Ratio

11.99%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

12.31%

ROE (avg)

8.01%

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

1.42

EV to EBIT

35.32

EV to EBITDA

8.78

EV to Capital Employed

1.40

EV to Sales

4.96

PEG Ratio

Dividend Yield

ROCE (Latest)

3.96%

ROE (Latest)

3.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly 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

7What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 2 %

INVENTORY TURNOVER RATIO(HY)

Highest at 73.23 times

DIVIDEND PAYOUT RATIO(Y)

Highest at 36.36%

CASH AND EQV(HY)

Highest at CNY 9,281.02 MM

DIVIDEND PER SHARE(HY)

Highest at CNY 5.88

-31What is not working for the Company

NET SALES(HY)

At CNY 3,117.83 MM has Grown at -19.19%

NET PROFIT(HY)

At CNY 329.59 MM has Grown at -65.59%

INTEREST(HY)

At CNY 242.35 MM has Grown at 57.06%

OPERATING CASH FLOW(Y)

Lowest at CNY 4,254.25 MM

ROCE(HY)

Lowest at 2.52%

RAW MATERIAL COST(Y)

Grown by 10.59% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.88 times

Here's what is working for Shandong Xinchao Energy Corp. Ltd.

Debt-Equity Ratio

Lowest at 2 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 73.23 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at CNY 9,281.02 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at CNY 5.88

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 36.36%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Shandong Xinchao Energy Corp. Ltd.

Net Sales

At CNY 3,117.83 MM has Grown at -19.19%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Profit

At CNY 329.59 MM has Grown at -65.59%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 242.35 MM has Grown at 57.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 4,254.25 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Lowest at 5.88 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 10.59% (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

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