Beijing Global Safety Technology Co., Ltd. (300523) 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 Global Safety Technology Co., Ltd.

Why is Beijing Global Safety Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.73%

The company has been able to generate a Return on Capital Employed (avg) of 1.73% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -0.17% and Operating profit at -220.74% over the last 5 years

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 -15.73%, its profits have risen by 34%

Below par performance in long term as well as near term

Along with generating -15.73% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Software Products)

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

Is Beijing Global Safety Technology Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Beijing Global Safety Technology Co., Ltd.

-15.73%

0.54

40.88%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.17%

EBIT Growth (5y)

-220.74%

EBIT to Interest (avg)

-1.61

Debt to EBITDA (avg)

0.70

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.76

Tax Ratio

0.12%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.73%

ROE (avg)

2.45%

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

4.98

EV to EBIT

-31.36

EV to EBITDA

-39.56

EV to Capital Employed

3.66

EV to Sales

3.55

PEG Ratio

Dividend Yield

ROCE (Latest)

-11.66%

ROE (Latest)

-21.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

13What is working for the Company

NET SALES(HY)

At CNY 923.35 MM has Grown at 42.22%

RAW MATERIAL COST(Y)

Fallen by -2.6% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.17 times

PRE-TAX PROFIT(Q)

Highest at CNY -18.42 MM

NET PROFIT(Q)

Highest at CNY -29.72 MM

EPS(Q)

Highest at CNY -0.13

-3What is not working for the Company

INTEREST(Q)

At CNY 6.62 MM has Grown at 15.79%

DEBT-EQUITY RATIO (HY)

Highest at 50.09 %

Here's what is working for Beijing Global Safety Technology Co., Ltd.

Net Sales

At CNY 923.35 MM has Grown at 42.22%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY -18.42 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 -29.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.13

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 3.17 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 -2.6% (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 Global Safety Technology Co., Ltd.

Interest

At CNY 6.62 MM has Grown at 15.79%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 50.09 %

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