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.

-14.25%

0.06

52.28%

China Shanghai Composite

15.17%

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)

8.86%

EBIT Growth (5y)

11.84%

EBIT to Interest (avg)

7.81

Debt to EBITDA (avg)

3.05

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

1.11

Tax Ratio

26.66%

Dividend Payout Ratio

30.79%

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

Industry P/E

Price to Book Value

3.52

EV to EBIT

32.33

EV to EBITDA

29.40

EV to Capital Employed

2.70

EV to Sales

2.22

PEG Ratio

7.63

Dividend Yield

0.48%

ROCE (Latest)

8.36%

ROE (Latest)

7.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -44.87 MM

NET PROFIT(HY)

At CNY 102.66 MM has Grown at 51.41%

-11What is not working for the Company

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

RAW MATERIAL COST(Y)

Grown by 19.26% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 48.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.57 %

PRE-TAX PROFIT(Q)

Lowest at CNY 32.25 MM

NET PROFIT(Q)

Lowest at CNY 24.35 MM

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

Operating Cash Flow

Highest at CNY -44.87 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

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

Interest

At CNY 28.51 MM has Grown at 56.28%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 169.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 26.73 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at CNY 48.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.57 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 32.25 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 24.35 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 19.26% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales