The author | the Ruilan team
Abstract: From the issued market value of 1.511 billion yuan to 22.74 billion yuan, the new clean energy has increased by 15.05 times in 2 years. From 2016 to the first three quarters of 2021, the owner's equity increased from 170 million yuan to 1.429 billion yuan, the debt ratio decreased from 40.99% to 16.35%, the current debt ratio decreased from 100% to 94.62%, the return on net assets was 23.59%, 19.86%, 34.27%, 18.8%, 16.1%, the highest year 2018 34.27% compared with the lowest year 2020 16.1% difference of 18.17%, Net profit margin on sales is ahead of Vail and Taiji, and the company has not formed any goodwill since its inception. The cumulative dividend rate was 30.22%, higher than the 12.67% of the shares of the comparable company Weir and lower than the 130.42% of the shares of Taiji.
Market capitalization: issued market value, highest market value, current market value, compared with Weier shares and Taiji shares
On September 28, 2020, New Clean Energy was listed and issued with a market value of 1.511 billion yuan, the highest market value of 32.303 billion yuan appeared on November 24, 2021, and the current market value (January 14, 2022) was 22.74 billion yuan.
The market value of the comparable company Weir shares [1] is 242.619 billion yuan, and the market value of Taiji shares [2] is 5.36 billion yuan.
Asset Account: Total Assets, Owner's Equity, ROE, Goodwill
I. Total Assets and Owner's Equity:
Total assets [3] increased from 290 million yuan in 2016 to 1.708 billion yuan in the first three quarters of 2021, owner's equity increased from 170 million yuan in 2016 to 1.429 billion yuan in the first three quarters of 2021, and the owner's equity ratio [4] increased from 58.62% in 2016 to 83.67% in the first three quarters of 2021.
II. Goodwill:
Since its establishment in 2013, New Clean Energy has not formed goodwill [5].
3. Return on Net Assets (ROE):
New Clean Energy's return on net assets from 2016 to 2020 [6] was 23.59%, 19.86%, 34.27%, 18.8%, 16.1%, the highest value of 34.27% appeared in 2018, and the lowest value of 16.1% appeared in 2020.
In order to better understand the industry status of New Clean Energy and the level of shareholder returns, through the comparison of comparable companies' return on net assets, in 2020, from high to low, Weil shares are 28.24%, New Clean Energy 16.1%, and Taiji shares 5.15%.
The comparison conclusion is that New Clean Energy lags behind Weier shares in 2020, but is at a leading level in the long cycle and the return on net assets is stable.
The three factors that determine ROE are the leverage coefficient [7], the asset turnover ratio [8], and the net profit margin on sales [9], and the penetration comparison of these three enterprises in 2020 is as follows:
The leverage coefficients are, in order: Weier shares 2.09, New Clean Energy 1.27, Taiji shares 1.26;
The asset turnover rate is: Weier shares 0.99, new clean energy 0.87, Taiji shares 0.49;
The net profit margin on sales is: New Clean Energy 14.59%, Weier shares 13.65%, Taiji shares 8.31%.
New Clean Energy's return on net assets ranks second, the company has the highest net profit margin on sales in its peers, and the financial leverage used is also much lower than that of Weir shares, and only inferior to Weir shares in terms of asset turnover.
Liabilities: Debt Ratio, Current Liability Ratio, Accounts Payable and Notes Payable, Flow/Quick Ratio
First, the debt ratio:
Total liabilities increased from $118 million in 2016 to $279 million in September 2021, and the debt ratio decreased from 40.99 in 2016 to 16.35% in the first three quarters of 2021.
Current Liability Ratio:
New Clean Energy's current liabilities [10] consist of accounts payable and notes payable, and the current liabilities increased from 118 million yuan in 2016 to 264 million yuan in the first three quarters of 2021, accounting for 94.62% of the total debt ratio from 100% in 2016 to 94.62% in the first three quarters of 2021.
For the third quarter of 2021, current liabilities consisted of accounts payable of $138 million and notes payable of $90 million.
Third, the current ratio and the quick ratio:
The new clean energy current ratio [12] and quick ratio [13] rose from 2.36 and 1.96 in 2016 to 3.99 and 3.5 in 2017, then decreased to 3.05 and 2.44 in 2019, and finally rose to 5.47 and 4.99 in 2020, the current ratio remained, between 2.3-5.5, and the quick ratio remained between 1.9-5.
The current ratio of 5.47 in 2020 was a significant increase compared to 3.03 in 2019 due to the $449 million raised from the initial public offering of shares. The current ratio from 2016 to 2020 is greater than 2, indicating that current assets can cover current liabilities by 2 times.
Dividends: 0.42 billion yuan for each dividend, with a dividend rate of 30.22%
New Clean Energy was listed once in two years, with a cumulative profit of 139 million yuan and a dividend of 0.42 billion yuan and a dividend rate of 30.22% by 2020, which was higher than the dividend rate of 12.67% of the shares of the comparable company Weir and 130.42% lower than that of Taiji shares.
Notes and References:
[1] Weier Shares: Listed on the Shanghai Stock Exchange Code: SH603501
[2] Taiji Shares: Listed on the Growth Enterprise Market of Shenzhen Stock Exchange Code: SZ300046
[3] Total assets: all assets owned or controlled by the enterprise
[4] Owner's equity: The remaining equity enjoyed by the owner after deducting the liabilities of the enterprise assets.
[5] Goodwill: The present value of the excess profits that the enterprise expects to make in the future that exceed the normal realized profits of the same industry
[6] Return on net assets: Reflects the level of income from shareholders' equity, and is used to measure the efficiency of the company's use of its own capital
[7] Leverage coefficient: reflects the size and degree of financial leverage, and evaluates the size of the financial risk of the enterprise
[8] Asset turnover rate: an indicator that measures the ratio between the scale of asset investment and the level of sales
[9] Net profit margin on sales: Measures the ability of a company to obtain sales revenue in a certain period of time
[10] Current liabilities: Debts that will be repaid within a business cycle of one year or more
[11] Current ratio: The ratio of current assets to current liabilities, reflecting the ability of enterprises to repay short-term debts
[12] Quick ratio: The ratio of quick assets to current liabilities reflects the ability and level of enterprises to repay their debts immediately
Produced by Ruilan Financial News
The article is for reference only The market is risky And investment should be cautious
Source: Ruilan Finance (ID:ruilan808)