Shenzhen Gas Corp. Ltd. (601139) 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 Gas Corp. Ltd.

Why is Shenzhen Gas Corp. Ltd. ?

Poor Management Efficiency with a low ROCE of 9.47%

The company has been able to generate a Return on Capital Employed (avg) of 9.47% 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 11.99% and Operating profit at 3.72% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 11.11% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.99% and Operating profit at 3.72% over the last 5 years

OPERATING CASH FLOW(Y) Highest at CNY 4,546.38 MM
RAW MATERIAL COST(Y) Fallen by -6.7% (YoY)
CASH AND EQV(HY) Highest at CNY 12,955.79 MM

With ROE of 9.30%, it has a very expensive valuation with a 0.97 Price to Book Value

Over the past year, while the stock has generated a return of -3.66%, its profits have risen by 1.9% ; the PEG ratio of the company is 5.6
At the current price, the company has a high dividend yield of 2.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Gas Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Gas should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gas)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Shenzhen Gas Corp. Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Gas Corp. Ltd.

-4.12%

-0.49

26.99%

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)

11.99%

EBIT Growth (5y)

3.72%

EBIT to Interest (avg)

6.00

Debt to EBITDA (avg)

1.57

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.00

Tax Ratio

18.18%

Dividend Payout Ratio

32.69%

Pledged Shares

Institutional Holding

ROCE (avg)

9.87%

ROE (avg)

11.11%

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

0.97

EV to EBIT

11.10

EV to EBITDA

7.43

EV to Capital Employed

0.98

EV to Sales

0.77

PEG Ratio

5.59

Dividend Yield

2.84%

ROCE (Latest)

8.80%

ROE (Latest)

9.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 4,546.38 MM

RAW MATERIAL COST(Y)

Fallen by -6.7% (YoY

CASH AND EQV(HY)

Highest at CNY 12,955.79 MM

DEBT-EQUITY RATIO (HY)

Lowest at 64.89 %

NET SALES(Q)

Highest at CNY 7,977.33 MM

PRE-TAX PROFIT(Q)

Highest at CNY 628.44 MM

NET PROFIT(Q)

Highest at CNY 511.31 MM

EPS(Q)

Highest at CNY 0.16

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.69 times

Here's what is working for Shenzhen Gas Corp. Ltd.

Operating Cash Flow

Highest at CNY 4,546.38 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)

Net Sales

Highest at CNY 7,977.33 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 628.44 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 511.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 12,955.79 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 64.89 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -6.7% (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 Gas Corp. Ltd.

Debtors Turnover Ratio

Lowest at 4.69 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio