Daodaoquan Grain & Oil Co., Ltd. (002852) 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

Daodaoquan Grain & Oil Co., Ltd.

Why is Daodaoquan Grain & Oil Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.40%

The company has been able to generate a Return on Capital Employed (avg) of 5.40% signifying low profitability per unit of total capital (equity and debt)

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 3.65% and Operating profit at 22.14% 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 2.83% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 1,426.43 MM
INTEREST(Q) At CNY 5.94 MM has Grown at 70.31%
RAW MATERIAL COST(Y) Grown by 5.95% (YoY)

With ROE of 15.18%, it has a very attractive valuation with a 1.70 Price to Book Value

Over the past year, while the stock has generated a return of 7.13%, its profits have risen by 1523.5% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 3.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Daodaoquan Grain & Oil Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

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

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

Is Daodaoquan Grain & Oil Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Daodaoquan Grain & Oil Co., Ltd.

-100.0%

0.60

39.79%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.65%

EBIT Growth (5y)

22.14%

EBIT to Interest (avg)

2.15

Debt to EBITDA (avg)

1.93

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

1.77

Tax Ratio

25.75%

Dividend Payout Ratio

55.42%

Pledged Shares

Institutional Holding

ROCE (avg)

5.40%

ROE (avg)

2.83%

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

1.70

EV to EBIT

13.39

EV to EBITDA

9.60

EV to Capital Employed

1.49

EV to Sales

0.81

PEG Ratio

0.01

Dividend Yield

3.68%

ROCE (Latest)

11.13%

ROE (Latest)

15.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly 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

10What is working for the Company

NET PROFIT(HY)

At CNY 109.59 MM has Grown at 309.58%

ROCE(HY)

Highest at 13.23%

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,426.43 MM

INTEREST(Q)

At CNY 5.94 MM has Grown at 70.31%

RAW MATERIAL COST(Y)

Grown by 5.95% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 62.5 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.89 %

PRE-TAX PROFIT(Q)

Lowest at CNY 50.86 MM

NET PROFIT(Q)

Lowest at CNY 37.77 MM

EPS(Q)

Lowest at CNY 0.1

Here's what is not working for Daodaoquan Grain & Oil Co., Ltd.

Interest

At CNY 5.94 MM has Grown at 70.31%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 50.86 MM has Fallen at -50.92%

over average net sales of the previous four periods of CNY 103.62 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 37.77 MM has Fallen at -54.78%

over average net sales of the previous four periods of CNY 83.52 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 1,426.43 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 62.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 50.86 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 37.77 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 5.95% (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