Beijing Huayuanyitong Thermal Technology Co., Ltd. engages in the heating business in China. It is involved in heating project investment, heating contracting operation, contract energy management, heating and energy-saving technology research and development activities, as well as provides heating management consulting services. Beijing Huayuanyitong Thermal Technology Co., Ltd. was founded in 2002 and is based in Beijing, China.

China

JINGNENG THERMAL

Utilities

The company pays dividends from time to time. It has paid dividends in less than half the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. On average, the company pays dividends annually. 

002893.SZ reported revenue of CNY 1 103mn in the last 12 months, up 3% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 16% from FY24 to CNY 0.29.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 6ppts and its growth accelerated by 0ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported average EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 11.1% in the last 12 months, a decline from 19.1% in FY23. 

Historically, 002893.SZ has reported modest net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 7.0%, a growth from 4.8% in FY23. 

JINGNENG THERMAL reported a return on equity (RoE) of 6.1% in the last 12 months, up from 5.8% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to 4.9%, above the peers. 

Another important profitability metric, return on assets (RoA), amounted to 3.0% in the last 12 months, an increase from 2.3% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.8 in the past several years. This ratio implies a poor shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

002893.SZ has average trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is usually stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, negligible return on capital, and poor working capital management.

In highly turbulent market conditions, 002893.SZ is volatile. In other words, the stock will fall much more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be large. 

In normal market circumstances, 002893.SZ is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to notable. 

From both historical and forecast perspectives, the stock is slightly overpriced compared to similar stocks. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBITDA, reasonably priced on P/FCF. 

Log in

JINGNENG THERMAL

CN¥ 10.78

4

JINGNENG THERMAL

CN¥ 10.78

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CN¥ 10.78

About

About

About

About