East Group Co., Ltd. (300376) 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

East Group Co., Ltd.

Why is East Group Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -0.66% and Operating profit at -25.56% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 6.77% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.66% and Operating profit at -25.56% over the last 5 years

The company has declared Negative results for the last 9 consecutive quarters

NET PROFIT(HY) At CNY -55.85 MM has Grown at -303.86%
ROCE(HY) Lowest at -0.08%
INTEREST COVERAGE RATIO(Q) Lowest at 194.81

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 28.72%, its profits have fallen by -106%
At the current price, the company has a high dividend yield of 0.4

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is East Group Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

East Group Co., Ltd.

-18.86%

0.39

48.09%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.66%

EBIT Growth (5y)

-25.56%

EBIT to Interest (avg)

2.66

Debt to EBITDA (avg)

1.38

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.38

Tax Ratio

100.00%

Dividend Payout Ratio

19.23%

Pledged Shares

Institutional Holding

ROCE (avg)

5.62%

ROE (avg)

6.77%

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

1.85

EV to EBIT

80.46

EV to EBITDA

35.21

EV to Capital Employed

1.75

EV to Sales

3.36

PEG Ratio

Dividend Yield

0.41%

ROCE (Latest)

2.17%

ROE (Latest)

-0.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

NET SALES(9M)

At CNY 2,900.74 MM has Grown at 20.83%

RAW MATERIAL COST(Y)

Fallen by -13.95% (YoY

-26What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 260.5 MM

ROCE(HY)

Lowest at -3.2%

INTEREST(Q)

At CNY 16.64 MM has Grown at 17.68%

DEBT-EQUITY RATIO (HY)

Highest at 36.83 %

NET SALES(Q)

At CNY 876.65 MM has Fallen at -8.85%

PRE-TAX PROFIT(Q)

Lowest at CNY -175.83 MM

NET PROFIT(Q)

Lowest at CNY -161.91 MM

EPS(Q)

Lowest at CNY -0.07

Here's what is working for East Group Co., Ltd.

Raw Material Cost

Fallen by -13.95% (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 East Group Co., Ltd.

Pre-Tax Profit

At CNY -175.83 MM has Fallen at -1,697.79%

over average net sales of the previous four periods of CNY 11 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -161.91 MM has Fallen at -11,514.66%

over average net sales of the previous four periods of CNY -1.39 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 16.64 MM has Grown at 17.68%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 260.5 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 876.65 MM has Fallen at -8.85%

over average net sales of the previous four periods of CNY 961.71 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

Lowest at CNY -175.83 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 -161.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 36.83 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio