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

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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 15.81% and Operating profit at 18.98% 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 Jun 25

NET SALES(Q) At CNY 336.53 MM has Fallen at -19.26%
PRE-TAX PROFIT(Q) At CNY -77.36 MM has Fallen at -208.78%
ROCE(HY) Lowest at 11.32%

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 -16.12%, 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

Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -16.12% 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 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.

-16.12%

-1.33

15.90%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.81%

EBIT Growth (5y)

18.98%

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

146.30

EV to EBITDA

86.06

EV to Capital Employed

1.49

EV to Sales

49.33

PEG Ratio

8.77

Dividend Yield

2.56%

ROCE (Latest)

1.02%

ROE (Latest)

11.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 6,431.43 MM

DEBT-EQUITY RATIO (HY)

Lowest at 34.45 %

-18What is not working for the Company

NET SALES(Q)

At CNY 336.53 MM has Fallen at -19.26%

PRE-TAX PROFIT(Q)

At CNY -77.36 MM has Fallen at -208.78%

ROCE(HY)

Lowest at 11.32%

INTEREST(Q)

At CNY 147.55 MM has Grown at 45.99%

INTEREST COVERAGE RATIO(Q)

Lowest at 114.08

RAW MATERIAL COST(Y)

Grown by 22.08% (YoY

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

Operating Cash Flow

Highest at CNY 6,431.43 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)

Debt-Equity Ratio

Lowest at 34.45 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

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

Net Sales

At CNY 336.53 MM has Fallen at -19.26%

over average net sales of the previous four periods of CNY 416.83 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -77.36 MM has Fallen at -208.78%

over average net sales of the previous four periods of CNY 71.12 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

At CNY 147.55 MM has Grown at 45.99%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 114.08

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 147.55 MM

in the last five periods and Increased by 45.99% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

Lowest at CNY -77.36 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 22.08% (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