Anhui Gourgen Traffic Construction Co., Ltd. (603815) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Anhui Gourgen Traffic Construction Co., Ltd.

Why is Anhui Gourgen Traffic Construction Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 8.86% and Operating profit at 11.84% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 7.15% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.86% and Operating profit at 11.84% over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

INVENTORY TURNOVER RATIO(HY) Lowest at 26.73 times
INTEREST(Q) At CNY 28.51 MM has Grown at 56.28%
INTEREST COVERAGE RATIO(Q) Lowest at 169.58

With ROE of 7.04%, it has a very expensive valuation with a 3.52 Price to Book Value

Over the past year, while the stock has generated a return of 1.23%, its profits have risen by 6.5% ; the PEG ratio of the company is 7.6

Underperformed the market in the last 1 year

The stock has generated a return of 1.23% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Anhui Gourgen Traffic Construction Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Anhui Gourgen Traffic Construction Co., Ltd.

-23.69%

0.06

52.28%

China Shanghai Composite

20.18%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.48%

EBIT Growth (5y)

-227.38%

EBIT to Interest (avg)

7.81

Debt to EBITDA (avg)

3.05

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

1.06

Tax Ratio

26.66%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

17.04%

ROE (avg)

7.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.30

EV to EBIT

-6.51

EV to EBITDA

-6.70

EV to Capital Employed

1.70

EV to Sales

1.34

PEG Ratio

Dividend Yield

1.11%

ROCE (Latest)

-26.15%

ROE (Latest)

-47.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -50.74% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 14.54 %

PRE-TAX PROFIT(Q)

At CNY 74.85 MM has Grown at 62.46%

NET PROFIT(Q)

At CNY 56.73 MM has Grown at 71.74%

-25What is not working for the Company

NET PROFIT(HY)

At CNY -860.8 MM has Grown at -1,598.89%

ROCE(HY)

Lowest at -38.65%

INTEREST(Q)

At CNY 18.59 MM has Grown at 21.42%

CASH AND EQV(HY)

Lowest at CNY 945.58 MM

DEBT-EQUITY RATIO (HY)

Highest at 84.64 %

NET SALES(Q)

Lowest at CNY 634.41 MM

Here's what is working for Anhui Gourgen Traffic Construction Co., Ltd.

Operating Profit Margin

Highest at 14.54 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CNY 74.85 MM has Grown at 62.46%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 56.73 MM has Grown at 71.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -50.74% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Anhui Gourgen Traffic Construction Co., Ltd.

Net Sales

At CNY 634.41 MM has Fallen at -19.59%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 18.59 MM has Grown at 21.42%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 634.41 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 945.58 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 84.64 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio