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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shenzhen Gas Corp. Ltd.

Why is Shenzhen Gas Corp. 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 16.83% and Operating profit at 6.51% 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 11.11% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 16.83% and Operating profit at 6.51% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at CNY 1,834.18 MM
ROCE(HY) Lowest at 8.79%
RAW MATERIAL COST(Y) Grown by 106.59% (YoY)

With ROE of 9.37%, it has a very expensive valuation with a 1.21 Price to Book Value

Over the past year, while the stock has generated a return of -8.14%, its profits have fallen by -14.7%
At the current price, the company has a high dividend yield of 2.4

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.14% returns

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 Gas)

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

Is Shenzhen Gas Corp. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Gas Corp. Ltd.

-8.14%

-0.50

17.16%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.83%

EBIT Growth (5y)

6.51%

EBIT to Interest (avg)

6.80

Debt to EBITDA (avg)

2.29

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.12

Tax Ratio

15.29%

Dividend Payout Ratio

31.59%

Pledged Shares

Institutional Holding

ROCE (avg)

9.47%

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

1.21

EV to EBIT

16.22

EV to EBITDA

9.86

EV to Capital Employed

1.12

EV to Sales

1.04

PEG Ratio

Dividend Yield

2.42%

ROCE (Latest)

6.88%

ROE (Latest)

9.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

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

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DEBT-EQUITY RATIO (HY)

Lowest at 0 %

NET SALES(Q)

Highest at CNY 7,918.51 MM

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,834.18 MM

ROCE(HY)

Lowest at 8.79%

RAW MATERIAL COST(Y)

Grown by 106.59% (YoY

CASH AND EQV(HY)

Lowest at CNY 4,683.49 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0%

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

Net Sales

Highest at CNY 7,918.51 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at 0 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Shenzhen Gas Corp. Ltd.

Operating Cash Flow

Lowest at CNY 1,834.18 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)

Cash and Eqv

Lowest at CNY 4,683.49 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0%

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 106.59% (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