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

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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 5.00% and Operating profit at 25.99% 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 Jun 25

OPERATING CASH FLOW(Y) Lowest at CNY 2,106.32 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 3.05%
DEBTORS TURNOVER RATIO(HY) Lowest at 18.48%

With ROE of 15.18%, it has a very attractive valuation with a 1.32 Price to Book Value

Over the past year, while the stock has generated a return of 24.94%, 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 4.7

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, High Return

Absolute

Risk Adjusted

Volatility

Daodaoquan Grain & Oil Co., Ltd.

3.82%

1.02

40.44%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.00%

EBIT Growth (5y)

25.99%

EBIT to Interest (avg)

2.15

Debt to EBITDA (avg)

1.93

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

1.80

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

1.32

EV to EBIT

11.01

EV to EBITDA

7.89

EV to Capital Employed

1.23

EV to Sales

0.66

PEG Ratio

0.01

Dividend Yield

4.74%

ROCE (Latest)

11.13%

ROE (Latest)

15.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

17What is working for the Company

NET PROFIT(HY)

At CNY 183.56 MM has Grown at 385.43%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

ROCE(HY)

Highest at 15.54%

DIVIDEND PAYOUT RATIO(Y)

Highest at 77.4%

RAW MATERIAL COST(Y)

Fallen by -151.32% (YoY

DIVIDEND PER SHARE(HY)

Highest at CNY 18.48

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 2,106.32 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.05%

DEBTORS TURNOVER RATIO(HY)

Lowest at 18.48%

NET SALES(Q)

At CNY 1,301.77 MM has Fallen at -11.65%

Here's what is working for Daodaoquan Grain & Oil Co., Ltd.

Net Profit

At CNY 183.56 MM has Grown at 385.43%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Dividend per share

Highest at CNY 18.48

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 77.4%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -151.32% (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 Daodaoquan Grain & Oil Co., Ltd.

Operating Cash Flow

Lowest at CNY 2,106.32 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 1,301.77 MM has Fallen at -11.65%

over average net sales of the previous four periods of CNY 1,473.38 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 3.05%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 18.48%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio