Shuifa Energas Gas Co., Ltd. (603318) 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

Shuifa Energas Gas Co., Ltd.

Why is Shuifa Energas Gas Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 9.92%

The company has been able to generate a Return on Capital Employed (avg) of 9.92% 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 12.13% and Operating profit at 7.69% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 8.45% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.13% and Operating profit at 7.69% over the last 5 years

INTEREST COVERAGE RATIO(Q) Highest at 785.04
RAW MATERIAL COST(Y) Fallen by -29.63% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 57.8 %

With ROE of 1.21%, it has a risky valuation with a 2.60 Price to Book Value

Over the past year, while the stock has generated a return of 38.75%, its profits have fallen by -87.6%
At the current price, the company has a high dividend yield of 0.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shuifa Energas Gas Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Shuifa Energas Gas Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shuifa Energas Gas Co., Ltd.

38.75%

0.79

67.65%

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)

12.13%

EBIT Growth (5y)

7.69%

EBIT to Interest (avg)

2.70

Debt to EBITDA (avg)

3.12

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

0.87

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.42%

ROE (avg)

8.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

214

Industry P/E

Price to Book Value

2.60

EV to EBIT

30.77

EV to EBITDA

21.28

EV to Capital Employed

2.01

EV to Sales

2.46

PEG Ratio

Dividend Yield

0.65%

ROCE (Latest)

6.52%

ROE (Latest)

1.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

24What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 785.04

RAW MATERIAL COST(Y)

Fallen by -29.63% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 57.8 %

OPERATING PROFIT MARGIN(Q)

Highest at 17.29 %

PRE-TAX PROFIT(Q)

Highest at CNY 61.21 MM

NET PROFIT(Q)

Highest at CNY 35.06 MM

EPS(Q)

Highest at CNY 0.06

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 123.46 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.34 times

Here's what is working for Shuifa Energas Gas Co., Ltd.

Pre-Tax Profit

At CNY 61.21 MM has Grown at 287.22%

over average net sales of the previous four periods of CNY 15.81 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 35.06 MM has Grown at 616.85%

over average net sales of the previous four periods of CNY -6.78 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Interest Coverage Ratio

Highest at 785.04

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin

Highest at 17.29 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 61.21 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 35.06 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at 57.8 %

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 -29.63% (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 Shuifa Energas Gas Co., Ltd.

Inventory Turnover Ratio

Lowest at 10.34 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at CNY 123.46 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

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