Dongguan Golden Sun Abrasives Co., Ltd. (300606) 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

Dongguan Golden Sun Abrasives Co., Ltd.

Why is Dongguan Golden Sun Abrasives Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.05% and Operating profit at -167.71% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.53% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.05% and Operating profit at -167.71% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At CNY 3.59 MM has Grown at 112.04%
ROCE(HY) Lowest at -2.3%

With ROE of -2.64%, it has a risky valuation with a 4.98 Price to Book Value

Over the past year, while the stock has generated a return of 116.87%, its profits have fallen by -129.1%
At the current price, the company has a high dividend yield of 0.1

Market Beating performance in long term as well as near term

Along with generating 116.87% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dongguan Golden Sun Abrasives Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial 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 Industrial Products)

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

Is Dongguan Golden Sun Abrasives Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Dongguan Golden Sun Abrasives Co., Ltd.

116.87%

2.37

65.81%

China Shanghai Composite

24.7%

1.91

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.05%

EBIT Growth (5y)

-167.71%

EBIT to Interest (avg)

29.89

Debt to EBITDA (avg)

5.93

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

0.56

Tax Ratio

32.07%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.60%

ROE (avg)

7.53%

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

-165.87

EV to EBITDA

231.41

EV to Capital Employed

4.06

EV to Sales

6.72

PEG Ratio

Dividend Yield

0.12%

ROCE (Latest)

-2.45%

ROE (Latest)

-2.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

16What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 9.55 MM has Grown at 275.01%

NET PROFIT(Q)

At CNY 6.25 MM has Grown at 237.72%

RAW MATERIAL COST(Y)

Fallen by -2.92% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 2.62 times

NET SALES(Q)

Highest at CNY 152.93 MM

-10What is not working for the Company

INTEREST(HY)

At CNY 3.59 MM has Grown at 112.04%

ROCE(HY)

Lowest at -2.3%

Here's what is working for Dongguan Golden Sun Abrasives Co., Ltd.

Pre-Tax Profit

At CNY 9.55 MM has Grown at 275.01%

over average net sales of the previous four periods of CNY -5.45 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.25 MM has Grown at 237.72%

over average net sales of the previous four periods of CNY -4.54 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 152.93 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 2.62 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 -2.92% (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 Dongguan Golden Sun Abrasives Co., Ltd.

Interest

At CNY 3.59 MM has Grown at 112.04%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)