Beijing Gehua CATV Network Co., Ltd. (600037) 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

Beijing Gehua CATV Network Co., Ltd.

Why is Beijing Gehua CATV Network Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of -4.42% and Operating profit at -235.26% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

PRE-TAX PROFIT(Q) At CNY -19.28 MM has Fallen at -3,590.87%
NET PROFIT(Q) At CNY -17.23 MM has Fallen at -585.71%
NET SALES(HY) At CNY 935.83 MM has Grown at -9.83%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -0.13%, its profits have fallen by -16.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.13% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Beijing Gehua CATV Network Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Beijing Gehua CATV Network Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Beijing Gehua CATV Network Co., Ltd.

-10.7%

0.56

32.95%

China Shanghai Composite

21.43%

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)

-1.40%

EBIT Growth (5y)

-262.78%

EBIT to Interest (avg)

-6.63

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.66

Sales to Capital Employed (avg)

0.18

Tax Ratio

100.00%

Dividend Payout Ratio

203.25%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

ROE (avg)

0.81%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

128

Industry P/E

Price to Book Value

0.73

EV to EBIT

-11.94

EV to EBITDA

5.30

EV to Capital Employed

0.30

EV to Sales

0.62

PEG Ratio

0.64

Dividend Yield

0.41%

ROCE (Latest)

-2.54%

ROE (Latest)

0.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

28What is working for the Company

ROCE(HY)

Highest at 0.53%

NET SALES(Q)

At CNY 684.05 MM has Grown at 50.12%

RAW MATERIAL COST(Y)

Fallen by -238.03% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 14.46 times

PRE-TAX PROFIT(Q)

Highest at CNY 63.33 MM

NET PROFIT(Q)

Highest at CNY 64.34 MM

EPS(Q)

Highest at CNY 0.05

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 336.56 MM

DEBT-EQUITY RATIO (HY)

Highest at -59.74 %

Here's what is working for Beijing Gehua CATV Network Co., Ltd.

Pre-Tax Profit

At CNY 63.33 MM has Grown at 530.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 64.34 MM has Grown at 483.89%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 684.05 MM has Grown at 50.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 63.33 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 64.34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 14.46 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -238.03% (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 Beijing Gehua CATV Network Co., Ltd.

Operating Cash Flow

Lowest at CNY 336.56 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -59.74 %

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