Shenzhen Guangju Energy Co. Ltd. (000096) 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 Guangju Energy Co. Ltd.

Why is Shenzhen Guangju Energy Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 3.80%

The company has been able to generate a Return on Capital Employed (avg) of 3.80% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 2.01% and Operating profit at -2.09% over the last 5 years

With a fall in Net Sales of -29.51%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 4 consecutive quarters
INTEREST(HY) At CNY 0.26 MM has Grown at 137.95%
NET SALES(Q) At CNY 344.08 MM has Fallen at -29.51%
DEBT-EQUITY RATIO (HY) Highest at -14.42 %

With ROE of 2.77%, it has a very expensive valuation with a 2.16 Price to Book Value

Over the past year, while the stock has generated a return of -47.38%, its profits have fallen by -16.7%
At the current price, the company has a high dividend yield of 0.7

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 13.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -47.38% 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 Guangju Energy Co. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Guangju Energy Co. Ltd.

-48.15%

0.17

36.49%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.01%

EBIT Growth (5y)

-2.09%

EBIT to Interest (avg)

45.69

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

0.77

Tax Ratio

26.05%

Dividend Payout Ratio

40.85%

Pledged Shares

Institutional Holding

ROCE (avg)

3.80%

ROE (avg)

3.34%

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

2.16

EV to EBIT

253.39

EV to EBITDA

133.31

EV to Capital Employed

2.81

EV to Sales

3.09

PEG Ratio

Dividend Yield

0.66%

ROCE (Latest)

1.11%

ROE (Latest)

2.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly 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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -39.22% (YoY

-32What is not working for the Company

INTEREST(HY)

At CNY 0.26 MM has Grown at 137.95%

NET SALES(Q)

At CNY 344.08 MM has Fallen at -29.51%

DEBT-EQUITY RATIO (HY)

Highest at -14.42 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.05 times

CASH AND EQV(HY)

Lowest at CNY 1,808.99 MM

PRE-TAX PROFIT(Q)

Fallen at -30.37%

NET PROFIT(Q)

Fallen at -35.32%

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

Raw Material Cost

Fallen by -39.22% (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 Guangju Energy Co. Ltd.

Interest

At CNY 0.26 MM has Grown at 137.95%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 344.08 MM has Fallen at -29.51%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at -14.42 % and Grown

In each half year 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

Debtors Turnover Ratio

Lowest at 10.05 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

Pre-Tax Profit

Fallen at -30.37%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -35.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Cash and Eqv

Lowest at CNY 1,808.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents