Guoxin Energy Reveals High Expenses Rate In Fy20 Report

The profile of the company as a glance:

Shanxi Guoxin Energy Corporation Limited [900913:CH]is a Chinese based energy company that deals mainly on the supply and development of natural gas and coal bed methane, as well as town gas. The company also engages in other businesses such as the construction and operations of city gas pipelines. The company conducts its business activities within Chinese domestic regions and no involvement in the oversea market. The firm was established and issued a business license on August 1992 with its headquarter located at Shanxi region of China. The executive leader of the company is Jun Liu with up to about 4,413 other employees currently working for the company.

The stock review with reference annual EPS & PSR:

According to the Chinese stock market, there are lots of competition in the market which allows the stock of Shanxi Guoxin Energy Corporation Limited [900913:CH] to be traded with a price tag of about 5.46 CNY per stock meaning that the stock of the company is trending on a 24-hours price difference by 0.37% as compared to the price of the stock as same time on yesterday. The price of the stock also suggest that it has surged significantly by 19.90% YoY as compared to the price of the stock as at same period on 12 months ago. The 52-weeks high price of the stock stands at about 5.98 CNY per stock while the 52-weeks low price of the stock also stands at about 3.40 CNY per stock. The company’s total market capitalization amounts to about CNY7.19 billion while the total revenue generated from business during the Fy20 period amounted to about CNY10.35 billion, implying that the stock trends on an annual price to sales ratio (PSR) of about 0.70x. One of the factors that limited the PSR on annual basis is reduction in the total revenue generated from business during the Fy20 period.

The stock of the company also trends on an EPS growth on annual basis of about 86.24x. The EPS is regarded as one of the most vital financial measure used in ascertaining the profitability of a company’s stock. This particular financial indicator shows that the stock has a profitable return on annual basis.

However, we should take a look at the performances of the company in the past previous years.

The company’s previous annual financial performances:

Referencing the previous year’s financial performance reports of the company, it shows steady and consistent fall with strong decreasing ratios in most of the major financial indicators. These poor performances are vastly attributed to the steady fall in the distribution rate of the company within and outside china. The financial performance report of the Fy20 period highlights strong poor growth as some of the major financial indicators performed as follows;

Total income: The financial result that was showcased on reuters revealed that the total income raised from the company’s businesses amounted to about CNY10.35 billion, signifying that it decreased by 5.04% year-on-year when compared and analyzed from the CNY10.90 billion that was reported in the previous year’s financial result.

Net profit: The report of the Fy20 period also showed that the profit made by the company, amounted to CNY1.39 billion, signifying that it decreased by 30.5% year-on-year when compared and analyzed from the CNY2.00 billion that was reported in the previous year’s financial result.

Debt rate: The financial report of the company for the period in quote also showed that the total debt accumulated by the company amounted to about CNY20.95 billion, signifying that it decreased by 2.91% year-on-year when compared and analyzed from the CNY21.58 billion that was reported in the previous year’s financial result.

References: https://www.reuters.com/companies/600617.SS/financials/income-statement-annual, https://www.bloomberg.com/profile/company/900913:CH, https://www.marketscreener.com/quote/stock/SHANXI-GUOXIN-ENERGY-CORP-9949956/company/