BTG Hotels (Group) Co., Ltd. (600258) 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

BTG Hotels (Group) Co., Ltd.

Why is BTG Hotels (Group) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.73%

The company has been able to generate a Return on Capital Employed (avg) of 5.73% 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 6.24% and Operating profit at 37.93% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 3,360.88 MM
INTEREST COVERAGE RATIO(Q) Lowest at 700.41
OPERATING PROFIT(Q) Lowest at CNY 519.83 MM

With ROE of 7.34%, it has a fair valuation with a 1.41 Price to Book Value

Over the past year, while the stock has generated a return of 30.63%, its profits have risen by 0.4% ; the PEG ratio of the company is 19.2
At the current price, the company has a high dividend yield of 2.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to BTG Hotels (Group) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Hotels & Resorts should be less than 30%

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

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

Is BTG Hotels (Group) Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

BTG Hotels (Group) Co., Ltd.

-16.25%

0.70

30.13%

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)

5.78%

EBIT Growth (5y)

120.48%

EBIT to Interest (avg)

1.50

Debt to EBITDA (avg)

0.41

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

0.57

Tax Ratio

26.52%

Dividend Payout Ratio

61.95%

Pledged Shares

Institutional Holding

ROCE (avg)

5.73%

ROE (avg)

2.87%

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

1.10

EV to EBIT

9.32

EV to EBITDA

4.49

EV to Capital Employed

1.11

EV to Sales

1.64

PEG Ratio

Dividend Yield

2.85%

ROCE (Latest)

11.93%

ROE (Latest)

6.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

5What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 48.42 %

RAW MATERIAL COST(Y)

Fallen by -16.21% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 143.07 times

DEBTORS TURNOVER RATIO(HY)

Highest at 14.96 times

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 3,334.37 MM

ROCE(HY)

Lowest at 6.96%

INTEREST COVERAGE RATIO(Q)

Lowest at 437.09

OPERATING PROFIT(Q)

Lowest at CNY 281.47 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.84 %

Here's what is working for BTG Hotels (Group) Co., Ltd.

Debt-Equity Ratio

Lowest at 48.42 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 143.07 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 14.96 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -16.21% (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 BTG Hotels (Group) Co., Ltd.

Operating Cash Flow

Lowest at CNY 3,334.37 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Lowest at 437.09

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 281.47 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 15.84 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales