Shanxi Meijin Energy Co., Ltd. (000723) 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 Meijin Energy Co., Ltd.

Why is Shanxi Meijin Energy Co., Ltd. ?

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 9.49% and Operating profit at -200.29% 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 10.41% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.49% and Operating profit at -200.29% over the last 5 years

The company has declared Negative results for the last 11 consecutive quarters

NET PROFIT(HY) At CNY -845.99 MM has Grown at -77.03%
INTEREST(HY) At CNY 247.86 MM has Grown at 25.58%
OPERATING CASH FLOW(Y) Lowest at CNY 1,065.56 MM

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 -0.92%, its profits have fallen by -30.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.92% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Miscellaneous)

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

Is Shanxi Meijin Energy Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanxi Meijin Energy Co., Ltd.

-100.0%

0.05

34.27%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.49%

EBIT Growth (5y)

-200.29%

EBIT to Interest (avg)

6.27

Debt to EBITDA (avg)

5.65

Net Debt to Equity (avg)

0.76

Sales to Capital Employed (avg)

0.72

Tax Ratio

12.48%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.56%

ROE (avg)

10.41%

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

1.38

EV to EBIT

-32.67

EV to EBITDA

23.66

EV to Capital Employed

1.21

EV to Sales

1.68

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.70%

ROE (Latest)

-9.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-32What is not working for the Company

NET PROFIT(HY)

At CNY -845.99 MM has Grown at -77.03%

INTEREST(HY)

At CNY 247.86 MM has Grown at 25.58%

OPERATING CASH FLOW(Y)

Lowest at CNY 1,065.56 MM

NET SALES(Q)

At CNY 3,900.8 MM has Fallen at -15.82%

ROCE(HY)

Lowest at -7.98%

DEBT-EQUITY RATIO (HY)

Highest at 92.4 %

RAW MATERIAL COST(Y)

Grown by 6.19% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.17%

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

Depreciation

Highest at CNY 563.34 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CNY MM)

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

Net Profit

At CNY -845.99 MM has Grown at -77.03%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 247.86 MM has Grown at 25.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 3,900.8 MM has Fallen at -15.82%

over average net sales of the previous four periods of CNY 4,633.86 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 1,065.56 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)

Debt-Equity Ratio

Highest at 92.4 % and Grown

In each half year 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

Net Sales

Lowest at CNY 3,900.8 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 7.17%

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 6.19% (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