NEW YORK (TheStreet) -- Shares of Synthesis Energy Systems (SYMX) were gaining 15.7% to $1.40 on heavy trading volume Monday after the company announced the commissioning phase at the first of three syngas gasification plants.

The plant is located in Zibo City, Shandong Province, China, and it owned and operated by Aluminum Corp. of China (ACH) - Get Report. The new plant utilizes two SES Gasification Technology systems supplied by Tianwo-SES.

"Securing these three major China Aluminum projects is taking Suzhou Thvow Technology from a high-end equipment manufacturer to now include technology, research and development, and engineering services, to provide one total high-tech package solution for clean energy," Chairman Chen Yu Zhong said in a statement. "With our partner SES, our Tianwo-SES company is driving to become a world leader in clean energy technology."

About 2.2 million shares of Synthesis Energy Systems were traded by 10:47 a.m. Monday, above the company's average trading volume of about 881,000 shares a day.

TheStreet Ratings team rates SYNTHESIS ENERGY SYSTEMS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate SYNTHESIS ENERGY SYSTEMS INC (SYMX) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, SYNTHESIS ENERGY SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • SYMX has underperformed the S&P 500 Index, declining 24.85% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • SYMX, with its very weak revenue results, has greatly underperformed against the industry average of 1.7%. Since the same quarter one year prior, revenues plummeted by 61.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • SYMX's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.
  • SYNTHESIS ENERGY SYSTEMS INC has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, SYNTHESIS ENERGY SYSTEMS INC continued to lose money by earning -$0.21 versus -$0.34 in the prior year.
  • You can view the full analysis from the report here: SYMX Ratings Report