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

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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 4.28% and Operating profit at 61.84% over the last 5 years

Flat results in Mar 25

INTEREST COVERAGE RATIO(Q) Lowest at 278.98
NET SALES(Q) Lowest at CNY 1,752.27 MM
OPERATING PROFIT(Q) Lowest at CNY 228.13 MM

With ROE of 7.34%, it has a fair valuation with a 1.37 Price to Book Value

Over the past year, while the stock has generated a return of 10.76%, its profits have risen by 0.4% ; the PEG ratio of the company is 18.7
At the current price, the company has a high dividend yield of 2.4

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.

10.76%

0.48

28.96%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.28%

EBIT Growth (5y)

61.84%

EBIT to Interest (avg)

1.50

Debt to EBITDA (avg)

0.41

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

0.55

Tax Ratio

26.52%

Dividend Payout Ratio

49.85%

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

1.37

EV to EBIT

11.63

EV to EBITDA

4.65

EV to Capital Employed

1.39

EV to Sales

2.04

PEG Ratio

18.70

Dividend Yield

2.40%

ROCE (Latest)

11.95%

ROE (Latest)

7.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.96% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 53.72 %

DEBTORS TURNOVER RATIO(HY)

Highest at 13.61%

-7What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 278.98

NET SALES(Q)

Lowest at CNY 1,752.27 MM

OPERATING PROFIT(Q)

Lowest at CNY 228.13 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.02 %

NET PROFIT(Q)

At CNY 140.03 MM has Fallen at -28.97%

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

Debt-Equity Ratio

Lowest at 53.72 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 13.61%

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 -1.96% (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.

Interest Coverage Ratio

Lowest at 278.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 1,752.27 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 1,752.27 MM has Fallen at -8.88%

over average net sales of the previous four periods of CNY 1,923.05 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 228.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 13.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 140.03 MM has Fallen at -28.97%

over average net sales of the previous four periods of CNY 197.15 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Non Operating Income

Highest at CNY 0.27 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income