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)

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 143.69% and Operating profit at 58.04% 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 1.42% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 7 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 430.84 MM
NET PROFIT(HY) At CNY 7.85 MM has Grown at 161.2%
ROCE(HY) Highest at 11.88%

With ROE of 9.10%, it has a fair valuation with a 8.04 Price to Book Value

Over the past year, while the stock has generated a return of 44.48%, its profits have risen by 1664.1% ; the PEG ratio of the company is 0.1

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.

1.87%

2.26

53.87%

China Shanghai Composite

13.33%

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)

143.69%

EBIT Growth (5y)

58.04%

EBIT to Interest (avg)

-2.00

Debt to EBITDA (avg)

29.72

Net Debt to Equity (avg)

1.63

Sales to Capital Employed (avg)

1.59

Tax Ratio

22.65%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.50%

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

8.04

EV to EBIT

53.65

EV to EBITDA

36.50

EV to Capital Employed

4.35

EV to Sales

1.80

PEG Ratio

0.05

Dividend Yield

ROCE (Latest)

8.12%

ROE (Latest)

9.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

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

OPERATING CASH FLOW(Y)

Highest at CNY 430.84 MM

NET PROFIT(HY)

At CNY 7.85 MM has Grown at 161.2%

ROCE(HY)

Highest at 11.88%

RAW MATERIAL COST(Y)

Fallen by -11.64% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 92.29 %

INVENTORY TURNOVER RATIO(HY)

Highest at 14.49 times

PRE-TAX PROFIT(Q)

At CNY 22.95 MM has Grown at 77.59%

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.05 times

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

Net Profit

At CNY 7.85 MM has Grown at 161.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 430.84 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)

Pre-Tax Profit

At CNY 22.95 MM has Grown at 77.59%

over average net sales of the previous four periods of CNY 12.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Lowest at 92.29 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 14.49 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -11.64% (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 Tongyi Carbon Neutral Energy (Xinjiang) Co., Ltd.

Debtors Turnover Ratio

Lowest at 5.05 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio