Shanghai Huitong Energy Co., Ltd. (600605) 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

Shanghai Huitong Energy Co., Ltd.

Why is Shanghai Huitong Energy Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.75%

The company has been able to generate a Return on Capital Employed (avg) of 2.75% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 5.25% and Operating profit at -25.36% over the last 5 years

With a fall in Net Sales of -9.51%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
The company has declared negative results in Dec 24 after 6 consecutive negative quarters
OPERATING CASH FLOW(Y) Lowest at CNY -94.53 MM
ROCE(HY) Lowest at 1.64%
DEBT-EQUITY RATIO (HY) Highest at -50.08 %

With ROE of 2.35%, it has a very expensive valuation with a 4.95 Price to Book Value

Over the past year, while the stock has generated a return of -25.84%, its profits have fallen by -67.7%
At the current price, the company has a high dividend yield of 0.4

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -25.84% returns

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 Industrial Manufacturing)

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

Is Shanghai Huitong Energy Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai Huitong Energy Co., Ltd.

-27.63%

0.07

39.73%

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)

5.25%

EBIT Growth (5y)

-25.36%

EBIT to Interest (avg)

9.75

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

-0.64

Sales to Capital Employed (avg)

0.09

Tax Ratio

20.15%

Dividend Payout Ratio

30.37%

Pledged Shares

Institutional Holding

ROCE (avg)

2.75%

ROE (avg)

4.43%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

210

Industry P/E

Price to Book Value

4.95

EV to EBIT

568.21

EV to EBITDA

196.29

EV to Capital Employed

9.66

EV to Sales

50.06

PEG Ratio

Dividend Yield

0.41%

ROCE (Latest)

1.70%

ROE (Latest)

2.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -10.2% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 152.78 times

-26What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -94.53 MM

ROCE(HY)

Lowest at 1.64%

DEBT-EQUITY RATIO (HY)

Highest at -50.08 %

NET SALES(Q)

Lowest at CNY 25.51 MM

NET PROFIT(Q)

At CNY 5.66 MM has Fallen at -31.94%

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

Inventory Turnover Ratio

Highest at 152.78 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -10.2% (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 Shanghai Huitong Energy Co., Ltd.

Net Sales

At CNY 25.51 MM has Fallen at -19.29%

over average net sales of the previous four periods of CNY 31.61 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY -94.53 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)

Net Sales

Lowest at CNY 25.51 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Profit

At CNY 5.66 MM has Fallen at -31.94%

over average net sales of the previous four periods of CNY 8.32 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at -50.08 %

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