Shenzhen Energy Group Co., Ltd. (000027) 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

Shenzhen Energy Group Co., Ltd.

Why is Shenzhen Energy Group Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.40%

Poor long term growth as Net Sales has grown by an annual rate of 14.15% and Operating profit at 6.33% over the last 5 years
The company is Net-Debt Free

With ROE of 9.07%, it has a very expensive valuation with a 1.01 Price to Book Value

Over the past year, while the stock has generated a return of 11.43%, its profits have risen by 33.9% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 2.1

Underperformed the market in the last 1 year

The stock has generated a return of 11.43% in the last 1 year, much lower than market (China Shanghai Composite) returns of 23.91%

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 Shenzhen Energy Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Energy Group Co., Ltd.

11.78%

-0.15

31.50%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.15%

EBIT Growth (5y)

6.33%

EBIT to Interest (avg)

1.97

Debt to EBITDA (avg)

6.46

Net Debt to Equity (avg)

1.91

Sales to Capital Employed (avg)

0.35

Tax Ratio

30.04%

Dividend Payout Ratio

51.41%

Pledged Shares

Institutional Holding

ROCE (avg)

5.40%

ROE (avg)

8.60%

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

1.01

EV to EBIT

17.41

EV to EBITDA

10.01

EV to Capital Employed

1.00

EV to Sales

2.28

PEG Ratio

0.33

Dividend Yield

2.12%

ROCE (Latest)

5.76%

ROE (Latest)

9.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

15What is working for the Company

NET PROFIT(Q)

At CNY 1,215.3 MM has Grown at 143.07%

RAW MATERIAL COST(Y)

Fallen by -6.54% (YoY

CASH AND EQV(HY)

Highest at CNY 46,224.26 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 30 times

PRE-TAX PROFIT(Q)

Highest at CNY 1,825.27 MM

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 10,198.71 MM

INTEREST(Q)

At CNY 485.76 MM has Grown at 53.03%

NET SALES(Q)

At CNY 9,949.9 MM has Fallen at -8.36%

Here's what is working for Shenzhen Energy Group Co., Ltd.

Net Profit

At CNY 1,215.3 MM has Grown at 143.07%

over average net sales of the previous four periods of CNY 499.97 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 1,825.27 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 1,825.27 MM has Grown at 96.3%

over average net sales of the previous four periods of CNY 929.82 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 46,224.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 30 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 -6.54% (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 Shenzhen Energy Group Co., Ltd.

Operating Cash Flow

Lowest at CNY 10,198.71 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)

Interest

At CNY 485.76 MM has Grown at 53.03%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 9,949.9 MM has Fallen at -8.36%

over average net sales of the previous four periods of CNY 10,857.41 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)