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. ?

Poor Management Efficiency with a low ROCE of 5.70%

The company has been able to generate a Return on Capital Employed (avg) of 5.70% 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 6.23% and Operating profit at 9.37% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 8.35% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.23% and Operating profit at 9.37% over the last 5 years

Flat results in Jun 26

ROCE(HY) Lowest at 10.02%
NET SALES(Q) At CNY 5,904.7 MM has Fallen at -14.14%
INTEREST COVERAGE RATIO(Q) Lowest at 696.11

With ROE of 11.97%, it has a very expensive valuation with a 1.11 Price to Book Value

Over the past year, while the stock has generated a return of 11.83%, its profits have risen by 3.1% ; the PEG ratio of the company is 3
At the current price, the company has a high dividend yield of 5.2

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenergy Co., Ltd.

14.42%

-0.24

25.38%

China Shanghai Composite

3.23%

0.23

14.72%

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)

2.75

Debt to EBITDA (avg)

3.16

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

0.39

Tax Ratio

19.96%

Dividend Payout Ratio

56.10%

Pledged Shares

Institutional Holding

ROCE (avg)

5.74%

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

1.11

EV to EBIT

14.50

EV to EBITDA

8.72

EV to Capital Employed

1.07

EV to Sales

2.40

PEG Ratio

2.99

Dividend Yield

5.23%

ROCE (Latest)

7.36%

ROE (Latest)

11.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 9,873.9 MM

CASH AND EQV(HY)

Highest at CNY 36,126.13 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 24.04 times

-8What is not working for the Company

ROCE(HY)

Lowest at 10.02%

NET SALES(Q)

At CNY 5,904.7 MM has Fallen at -14.14%

INTEREST COVERAGE RATIO(Q)

Lowest at 696.11

RAW MATERIAL COST(Y)

Grown by 21.47% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 1,813.02 MM

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

Operating Cash Flow

Highest at CNY 9,873.9 MM

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 36,126.13 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 24.04 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Shenergy Co., Ltd.

Net Sales

At CNY 5,904.7 MM has Fallen at -14.14%

over average net sales of the previous four periods of CNY 6,877.51 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 696.11

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 1,813.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Raw Material Cost

Grown by 21.47% (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

Non Operating Income

Highest at CNY 0.75 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income