Why is Sinopec Oilfield Equipment Corp. ?
1
Poor Management Efficiency with a low ROCE of 2.43%
- The company has been able to generate a Return on Capital Employed (avg) of 2.43% signifying low profitability per unit of total capital (equity and debt)
2
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 3.45% and Operating profit at -0.04% 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 2.85% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 3.45% and Operating profit at -0.04% over the last 5 years
4
With a fall in Operating Profit of -11.45%, the company declared Very Negative results in Jun 25
- ROCE(HY) Lowest at 1.9%
- INVENTORY TURNOVER RATIO(HY) Lowest at 1.8%
- INTEREST(Q) At CNY 23.12 MM has Grown at 33.38%
5
With ROE of 2.51%, it has a expensive valuation with a 1.83 Price to Book Value
- Over the past year, while the stock has generated a return of 18.17%, its profits have fallen by -29.9%
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 Industrial Manufacturing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Sinopec Oilfield Equipment Corp. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Sinopec Oilfield Equipment Corp.
13.3%
0.55
44.51%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
3.45%
EBIT Growth (5y)
-0.04%
EBIT to Interest (avg)
1.23
Debt to EBITDA (avg)
7.90
Net Debt to Equity (avg)
0.68
Sales to Capital Employed (avg)
1.31
Tax Ratio
4.74%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.43%
ROE (avg)
2.85%
Valuation Key Factors 
Factor
Value
P/E Ratio
73
Industry P/E
Price to Book Value
1.83
EV to EBIT
82.30
EV to EBITDA
23.34
EV to Capital Employed
1.49
EV to Sales
1.05
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
1.81%
ROE (Latest)
2.51%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-22What is not working for the Company
ROCE(HY)
Lowest at 1.9%
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.8%
INTEREST(Q)
At CNY 23.12 MM has Grown at 33.38%
NET PROFIT(Q)
At CNY 22.18 MM has Fallen at -45.07%
RAW MATERIAL COST(Y)
Grown by 29.8% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.07%
NET SALES(Q)
Fallen at -12.77%
PRE-TAX PROFIT(Q)
Fallen at -31.92%
Here's what is not working for Sinopec Oilfield Equipment Corp.
Interest
At CNY 23.12 MM has Grown at 33.38%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Profit
At CNY 22.18 MM has Fallen at -45.07%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Inventory Turnover Ratio
Lowest at 1.8% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Net Sales
Fallen at -12.77%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Pre-Tax Profit
Fallen at -31.92%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Debtors Turnover Ratio
Lowest at 2.07%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 29.8% (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






