Shenergy Co., Ltd. (600642) 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

Shenergy Co., Ltd.

Why is Shenergy 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 3.11% and Operating profit at 12.32% 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 8.35% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.11% and Operating profit at 12.32% over the last 5 years

Flat results in Sep 25

DEBTORS TURNOVER RATIO(HY) Lowest at 2.92 times
INTEREST COVERAGE RATIO(Q) Lowest at 602.53
OPERATING PROFIT(Q) Lowest at CNY 1,521.98 MM

With ROE of 12.88%, it has a expensive valuation with a 1.07 Price to Book Value

Over the past year, while the stock has generated a return of 0.90%, its profits have risen by 2.5% ; the PEG ratio of the company is 3.3
At the current price, the company has a high dividend yield of 5.8

Underperformed the market in the last 1 year

The stock has generated a return of 0.90% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Power)

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

Is Shenergy Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenergy Co., Ltd.

6.45%

-0.11

18.31%

China Shanghai Composite

23.91%

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)

6.23%

EBIT Growth (5y)

9.37%

EBIT to Interest (avg)

2.47

Debt to EBITDA (avg)

2.92

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

0.39

Tax Ratio

17.32%

Dividend Payout Ratio

56.10%

Pledged Shares

Institutional Holding

ROCE (avg)

5.70%

ROE (avg)

8.35%

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

1.23

EV to EBIT

15.49

EV to EBITDA

9.31

EV to Capital Employed

1.14

EV to Sales

2.56

PEG Ratio

3.31

Dividend Yield

4.73%

ROCE (Latest)

7.36%

ROE (Latest)

11.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 9,679.83 MM

RAW MATERIAL COST(Y)

Fallen by 1.53% (YoY

CASH AND EQV(HY)

Highest at CNY 33,023.11 MM

-9What is not working for the Company

ROCE(HY)

Lowest at 10.15%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.72 times

INTEREST COVERAGE RATIO(Q)

Lowest at 432.82

DEBT-EQUITY RATIO (HY)

Highest at 91.2 %

OPERATING PROFIT(Q)

Lowest at CNY 1,077.76 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.81 %

Here's what is working for Shenergy Co., Ltd.

Operating Cash Flow

Highest at CNY 9,679.83 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 33,023.11 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 1.53% (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 Shenergy Co., Ltd.

Interest Coverage Ratio

Lowest at 432.82

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 2.72 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY 1,077.76 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 15.81 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 91.2 %

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