Shanxi Guoxin Energy Corp. Ltd. (600617) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shanxi Guoxin Energy Corp. Ltd.

Why is Shanxi Guoxin Energy Corp. Ltd. ?

Poor Management Efficiency with a low ROCE of 2.29%

The company has been able to generate a Return on Capital Employed (avg) of 2.29% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 11.19% and Operating profit at 19.68% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 0.70% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.19% and Operating profit at 19.68% over the last 5 years

Negative results in Mar 25

NET PROFIT(9M) At CNY -275.99 MM has Grown at -285.14%
NET SALES(HY) At CNY 9,700.15 MM has Grown at -12.8%
ROCE(HY) Lowest at -8.52%

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 30.83%, its profits have fallen by -271.9%

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 Garments & Apparels)

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

Is Shanxi Guoxin Energy Corp. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanxi Guoxin Energy Corp. Ltd.

32.64%

0.27

42.73%

China Shanghai Composite

26.21%

1.87

14.02%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.19%

EBIT Growth (5y)

19.68%

EBIT to Interest (avg)

0.58

Debt to EBITDA (avg)

14.30

Net Debt to Equity (avg)

3.76

Sales to Capital Employed (avg)

0.69

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.29%

ROE (avg)

0.70%

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

1.22

EV to EBIT

51.24

EV to EBITDA

13.54

EV to Capital Employed

1.05

EV to Sales

1.31

PEG Ratio

Dividend Yield

ROCE (Latest)

2.04%

ROE (Latest)

-5.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

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

12What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 260.74 MM has Grown at 6,669.29%

NET PROFIT(Q)

At CNY 116.5 MM has Grown at 237.82%

NET SALES(Q)

At CNY 5,486.4 MM has Grown at 36.5%

RAW MATERIAL COST(Y)

Fallen by -32.93% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 377.8 %

INVENTORY TURNOVER RATIO(HY)

Highest at 50.51%

-16What is not working for the Company

NET PROFIT(9M)

At CNY -275.99 MM has Grown at -285.14%

NET SALES(HY)

At CNY 9,700.15 MM has Grown at -12.8%

ROCE(HY)

Lowest at -8.52%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.94%

OPERATING PROFIT MARGIN(Q)

Lowest at 5.38 %

Here's what is working for Shanxi Guoxin Energy Corp. Ltd.

Pre-Tax Profit

At CNY 260.74 MM has Grown at 6,669.29%

over average net sales of the previous four periods of CNY -3.97 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 116.5 MM has Grown at 237.82%

over average net sales of the previous four periods of CNY -84.53 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 5,486.4 MM has Grown at 36.5%

over average net sales of the previous four periods of CNY 4,019.26 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 260.74 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Lowest at 377.8 %

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 50.51%

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 -32.93% (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 Shanxi Guoxin Energy Corp. Ltd.

Operating Profit Margin

Lowest at 5.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 6.94%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio