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.

-9.72%

-1.36

14.50%

China Shanghai Composite

23.91%

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)

8.69%

EBIT Growth (5y)

14.37%

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

51.27%

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

1.57

EV to EBIT

184.48

EV to EBITDA

113.36

EV to Capital Employed

1.42

EV to Sales

54.68

PEG Ratio

Dividend Yield

2.45%

ROCE (Latest)

0.77%

ROE (Latest)

10.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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 4,542.18 MM

RAW MATERIAL COST(Y)

Fallen by 1.12% (YoY

-14What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 39.47 %

INTEREST(Q)

At CNY 115.35 MM has Grown at 12.17%

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.51 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.6 times

NET SALES(Q)

Lowest at CNY 329.18 MM

OPERATING PROFIT(Q)

Lowest at CNY 137.11 MM

PRE-TAX PROFIT(Q)

At CNY 28.84 MM has Fallen at -36.16%

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

Operating Cash Flow

Highest at CNY 4,542.18 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by 1.12% (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 Sichuan Chuantou Energy Co., Ltd.

Net Sales

At CNY 329.18 MM has Fallen at -21.04%

over average net sales of the previous four periods of CNY 416.91 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 115.35 MM has Grown at 12.17%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 39.47 % 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

Net Sales

Lowest at CNY 329.18 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 137.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

At CNY 28.84 MM has Fallen at -36.16%

over average net sales of the previous four periods of CNY 45.17 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 7.51 times

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 0.6 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio