Tongyi Carbon Neutral Energy (Xinjiang) Co., Ltd. (600506) 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

Tongyi Carbon Neutral Energy (Xinjiang) Co., Ltd.

Why is Tongyi Carbon Neutral Energy (Xinjiang) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.50%

The company has been able to generate a Return on Capital Employed (avg) of 1.50% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 81.65% and Operating profit at 58.56% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 1.42% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 81.65% and Operating profit at 58.56% over the last 5 years

Positive results in Jun 26

NET PROFIT(HY) Higher at CNY 69.36 MM
ROCE(HY) Highest at 10.08%
INVENTORY TURNOVER RATIO(HY) Highest at 15.75 times

With ROE of 11.65%, it has a very expensive valuation with a 6.98 Price to Book Value

Over the past year, while the stock has generated a return of 11.18%, its profits have risen by 77.3% ; the PEG ratio of the company is 0.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tongyi Carbon Neutral Energy (Xinjiang) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tongyi Carbon Neutral Energy (Xinjiang) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Tongyi Carbon Neutral Energy (Xinjiang) Co., Ltd.

18.75%

0.56

60.79%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

81.65%

EBIT Growth (5y)

58.56%

EBIT to Interest (avg)

0.76

Debt to EBITDA (avg)

30.16

Net Debt to Equity (avg)

1.63

Sales to Capital Employed (avg)

1.83

Tax Ratio

12.75%

Dividend Payout Ratio

39.52%

Pledged Shares

Institutional Holding

ROCE (avg)

3.67%

ROE (avg)

1.42%

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

6.98

EV to EBIT

46.09

EV to EBITDA

35.03

EV to Capital Employed

5.01

EV to Sales

1.49

PEG Ratio

0.77

Dividend Yield

0.15%

ROCE (Latest)

10.87%

ROE (Latest)

11.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

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

16What is working for the Company

NET PROFIT(HY)

Higher at CNY 69.36 MM

ROCE(HY)

Highest at 10.08%

INVENTORY TURNOVER RATIO(HY)

Highest at 15.75 times

NET SALES(Q)

Highest at CNY 938.86 MM

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 269.01 MM

PRE-TAX PROFIT(Q)

At CNY 8.84 MM has Fallen at -46.89%

RAW MATERIAL COST(Y)

Grown by 20.84% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.81 times

NET PROFIT(Q)

At CNY 6.29 MM has Fallen at -40.43%

Here's what is working for Tongyi Carbon Neutral Energy (Xinjiang) Co., Ltd.

Net Sales

At CNY 938.86 MM has Grown at 47.67%

over average net sales of the previous four periods of CNY 635.8 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 15.75 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at CNY 938.86 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Tongyi Carbon Neutral Energy (Xinjiang) Co., Ltd.

Pre-Tax Profit

At CNY 8.84 MM has Fallen at -46.89%

over average net sales of the previous four periods of CNY 16.64 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 269.01 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Profit

At CNY 6.29 MM has Fallen at -40.43%

over average net sales of the previous four periods of CNY 10.56 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 4.81 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 20.84% (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

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