Sichuan Chuantou Energy Co., Ltd. (600674) 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

Sichuan Chuantou Energy Co., Ltd.

Why is Sichuan Chuantou Energy Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.66%

The company has been able to generate a Return on Capital Employed (avg) of 0.66% signifying low profitability per unit of total capital (equity and debt)

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 12.97% and Operating profit at 15.20% 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 11.07% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

INTEREST(HY) At CNY 267.44 MM has Grown at 7.59%
ROCE(HY) Lowest at 9.96%
RAW MATERIAL COST(Y) Grown by 7.02% (YoY)

With ROE of 11.25%, it has a very expensive valuation with a 1.64 Price to Book Value

Over the past year, while the stock has generated a return of 1.01%, its profits have risen by 1.7% ; the PEG ratio of the company is 8.8
At the current price, the company has a high dividend yield of 2.6

Underperformed the market in the last 1 year

The stock has generated a return of 1.01% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Power)

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

Is Sichuan Chuantou Energy Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sichuan Chuantou Energy Co., Ltd.

-0.58%

-1.36

14.50%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.97%

EBIT Growth (5y)

15.20%

EBIT to Interest (avg)

0.67

Debt to EBITDA (avg)

17.60

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

0.03

Tax Ratio

27.38%

Dividend Payout Ratio

43.04%

Pledged Shares

Institutional Holding

ROCE (avg)

0.66%

ROE (avg)

11.07%

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

1.64

EV to EBIT

146.65

EV to EBITDA

86.27

EV to Capital Employed

1.49

EV to Sales

48.57

PEG Ratio

8.80

Dividend Yield

2.55%

ROCE (Latest)

1.02%

ROE (Latest)

11.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 5,463.67 MM

PRE-TAX PROFIT(Q)

At CNY 128.22 MM has Grown at 155.1%

-5What is not working for the Company

INTEREST(HY)

At CNY 267.44 MM has Grown at 7.59%

ROCE(HY)

Lowest at 9.96%

RAW MATERIAL COST(Y)

Grown by 7.02% (YoY

Here's what is working for Sichuan Chuantou Energy Co., Ltd.

Pre-Tax Profit

At CNY 128.22 MM has Grown at 155.1%

over average net sales of the previous four periods of CNY 50.26 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 5,463.67 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Sichuan Chuantou Energy Co., Ltd.

Interest

At CNY 267.44 MM has Grown at 7.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 7.02% (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