China Ming Yang Wind Power (MY) Rises After Quarterly Report

NEW YORK (TheStreet) -- China Ming Yang Wind Power  (MY) rose Tuesday after the company reported its fourth-quarter results.

Total wind turbine generators (WTGs) decreased 32.1% to an equivalent wind power project output of 175.5 megawatts (MW) from 258.5 MW in the fourth quarter of 2012. Total revenue declined 39.9% year over year $89.4 million. Basic and diluted loss per share was 56 cents, compared to 19 cents in the same period one year earlier.

Gross loss was $3.3 million, compared to a gross profit of $12.3 million in the fourth quarter of 2012. Gross margin was -3.7%, compared to 8.5% in the same period one year earlier. Total comprehensive loss was $82.9 million, compared to $26.6 million in the same period one year earlier.

The stock was up 14.4% to $2.94 at 1:51 p.m. on Tuesday.

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TheStreet Ratings team rates CHINA MING YANG WIND PWR-ADR as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CHINA MING YANG WIND PWR-ADR (MY) a SELL. This is driven by some concerns, 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 feeble growth in its earnings per share, unimpressive growth in net income, disappointing return on equity and poor profit margins."

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

  • CHINA MING YANG WIND PWR-ADR has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINA MING YANG WIND PWR-ADR swung to a loss, reporting -$0.37 versus $0.37 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electrical Equipment industry. The net income has significantly decreased by 1672.3% when compared to the same quarter one year ago, falling from $0.55 million to -$8.70 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Electrical Equipment industry and the overall market, CHINA MING YANG WIND PWR-ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA MING YANG WIND PWR-ADR is currently extremely low, coming in at 13.17%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -5.53% is significantly below that of the industry average.
  • MY's debt-to-equity ratio of 0.66 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.92 is weak.
  • You can view the full analysis from the report here: MY Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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