Why is Xinjiang Torch Gas Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 17.96% and Operating profit at 16.02% over the last 5 years
2
Flat results in Sep 25
- INTEREST(HY) At CNY 1.19 MM has Grown at 18.64%
- NET SALES(Q) At CNY 334.79 MM has Fallen at -13.39%
3
With ROE of 13.00%, it has a fair valuation with a 2.24 Price to Book Value
- Over the past year, while the stock has generated a return of 76.50%, its profits have risen by 29.2% ; the PEG ratio of the company is 0.6
- At the current price, the company has a high dividend yield of 2.4
4
Market Beating performance in long term as well as near term
- Along with generating 76.50% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 Gas)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Xinjiang Torch Gas Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Xinjiang Torch Gas Co., Ltd.
12.85%
2.51
39.89%
China Shanghai Composite
19.22%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
17.01%
EBIT Growth (5y)
16.81%
EBIT to Interest (avg)
45.14
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.13
Sales to Capital Employed (avg)
0.92
Tax Ratio
10.70%
Dividend Payout Ratio
34.90%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.08%
ROE (avg)
8.68%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
1.13
EV to EBIT
6.53
EV to EBITDA
4.81
EV to Capital Employed
1.15
EV to Sales
0.99
PEG Ratio
0.39
Dividend Yield
4.02%
ROCE (Latest)
17.54%
ROE (Latest)
13.29%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 441.04 MM
ROCE(HY)
Highest at 13.15%
RAW MATERIAL COST(Y)
Fallen by -19.4% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 19.74 times
NET SALES(Q)
At CNY 479.9 MM has Grown at 17.82%
-11What is not working for the Company
INTEREST(HY)
At CNY 0.53 MM has Grown at 43.19%
OPERATING PROFIT(Q)
Lowest at CNY 59.22 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 12.34 %
NET PROFIT(Q)
Lowest at CNY 45.11 MM
EPS(Q)
Lowest at CNY 0.32
Here's what is working for Xinjiang Torch Gas Co., Ltd.
Operating Cash Flow
Highest at CNY 441.04 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
At CNY 479.9 MM has Grown at 17.82%
over average net sales of the previous four periods of CNY 407.32 MMMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Inventory Turnover Ratio
Highest at 19.74 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -19.4% (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 Xinjiang Torch Gas Co., Ltd.
Interest
At CNY 0.53 MM has Grown at 43.19%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit
Lowest at CNY 59.22 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 12.34 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
Lowest at CNY 45.11 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY 0.32
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)






