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 2.25% and Operating profit at -8.48% over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 25.15 MM
NET SALES(HY) At CNY 688.18 MM has Grown at -10.55%
DEBT-EQUITY RATIO (HY) Highest at 5.3 %

With ROE of 4.27%, it has a very expensive valuation with a 1.47 Price to Book Value

Over the past year, while the stock has generated a return of -43.74%, its profits have risen by 14.3% ; the PEG ratio of the company is 2.4
At the current price, the company has a high dividend yield of 1

Below par performance in long term as well as near term

Along with generating -43.74% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Guangju Energy Co. 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 Guangju Energy Co. Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Guangju Energy Co. Ltd.

-28.74%

-0.82

29.62%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.25%

EBIT Growth (5y)

-8.48%

EBIT to Interest (avg)

38.30

Debt to EBITDA (avg)

0.62

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

0.67

Tax Ratio

20.40%

Dividend Payout Ratio

34.50%

Pledged Shares

Institutional Holding

ROCE (avg)

3.23%

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

1.34

EV to EBIT

129.05

EV to EBITDA

87.96

EV to Capital Employed

1.32

EV to Sales

2.74

PEG Ratio

2.19

Dividend Yield

1.07%

ROCE (Latest)

1.02%

ROE (Latest)

4.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

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

25What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 64.04 MM has Grown at 11,790.18%

NET PROFIT(Q)

At CNY 56.96 MM has Grown at 3,000.51%

ROCE(HY)

Highest at 6.28%

RAW MATERIAL COST(Y)

Fallen by -22.3% (YoY

NET SALES(Q)

Highest at CNY 475.04 MM

OPERATING PROFIT(Q)

Highest at CNY 28.37 MM

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -36.63 MM

CASH AND EQV(HY)

Lowest at CNY 1,192.7 MM

INTEREST(Q)

Highest at CNY 2.16 MM

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

Pre-Tax Profit

At CNY 64.04 MM has Grown at 11,790.18%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 56.96 MM has Grown at 3,000.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 475.04 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 475.04 MM has Grown at 30.43%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 28.37 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Raw Material Cost

Fallen by -22.3% (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.

Operating Cash Flow

Lowest at CNY -36.63 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 2.16 MM

in the last five periods and Increased by 6.73% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 1,192.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents