Southern Hydropower JSC (SHP) 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

PetroVietnam Power Nhon Trach 2 JSC

Idico Corp. JSC

Vinh Son Song Hinh Hydropower JSC

Vietnam Power Development JSC

Gia Lai Electricity JSC

Thac Mo Hydro Power JSC

Central Hydropower JSC

Petrovietnam Power Corp.

Southern Hydropower JSC

Pha Lai Thermal Power JSC

Vinacomin - Power Holding Corp.

Why is Southern Hydropower JSC ?

Poor long term growth as Operating profit has grown by an annual rate 21.62% of over the last 5 years

NET PROFIT(Q) At VND 77,830.89 MM has Fallen at -44.47%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
RAW MATERIAL COST(Y) Grown by 11.74% (YoY)

With ROE of 30.20%, it has a fair valuation with a 3.11 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.94%, its profits have risen by 53.8% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 7.1

Below par performance in long term as well as near term

Along with generating -1.94% returns in the last 1 year, the stock has also underperformed Vietnam VN Ho Chi Minh Index in the last 3 years, 1 year and 3 months

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 Southern Hydropower JSC for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Southern Hydropower JSC

-100.0%

-0.07

13.39%

Vietnam VN Ho Chi Minh Index

43.59%

1.93

22.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.90%

EBIT Growth (5y)

21.62%

EBIT to Interest (avg)

22.09

Debt to EBITDA (avg)

0.54

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

0.48

Tax Ratio

10.18%

Dividend Payout Ratio

88.56%

Pledged Shares

Institutional Holding

ROCE (avg)

20.48%

ROE (avg)

17.27%

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

3.11

EV to EBIT

9.00

EV to EBITDA

7.04

EV to Capital Employed

3.30

EV to Sales

5.11

PEG Ratio

0.19

Dividend Yield

7.12%

ROCE (Latest)

36.70%

ROE (Latest)

30.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly 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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at VND 430,268.41 MM

DEBT-EQUITY RATIO (HY)

Lowest at -15.97 %

CASH AND EQV(HY)

Highest at VND 446,723.17 MM

-14What is not working for the Company

NET PROFIT(Q)

At VND 77,830.89 MM has Fallen at -44.47%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 11.74% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 38.43 times

DIVIDEND PER SHARE(HY)

Lowest at VND 2.93

NET SALES(Q)

Fallen at -13.68%

OPERATING PROFIT MARGIN(Q)

Lowest at 62.26 %

PRE-TAX PROFIT(Q)

Fallen at -27.89%

EPS(Q)

Lowest at VND 0

Here's what is working for Southern Hydropower JSC

Operating Cash Flow

Highest at VND 430,268.41 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 (VND MM)

Debt-Equity Ratio

Lowest at -15.97 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at VND 446,723.17 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Southern Hydropower JSC

Net Profit

At VND 77,830.89 MM has Fallen at -44.47%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (VND MM)

Net Sales

Fallen at -13.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (VND MM)

Operating Profit Margin

Lowest at 62.26 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -27.89%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (VND MM)

EPS

Lowest at VND 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (VND)

Inventory Turnover Ratio

Lowest at 38.43 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at VND 2.93

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (VND)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 11.74% (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