Gansu Guofang Industry & Trade Group Co., Ltd. (601086) 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

Gansu Guofang Industry & Trade Group Co., Ltd.

Why is Gansu Guofang Industry & Trade Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -11.58% and Operating profit at -7.92% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(9M) At CNY 46.69 MM has Grown at -27.68%
DEBT-EQUITY RATIO (HY) Highest at -36.15 %
INVENTORY TURNOVER RATIO(HY) Lowest at 2.45 times

With ROE of 3.57%, it has a very expensive valuation with a 4.72 Price to Book Value

Over the past year, while the stock has generated a return of 94.80%, its profits have fallen by -46.3%
At the current price, the company has a high dividend yield of 0.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gansu Guofang Industry & Trade Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Gansu Guofang Industry & Trade Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Gansu Guofang Industry & Trade Group Co., Ltd.

-47.99%

2.00

65.97%

China Shanghai Composite

16.78%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.96%

EBIT Growth (5y)

-19.02%

EBIT to Interest (avg)

44.16

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

0.50

Tax Ratio

31.44%

Dividend Payout Ratio

93.98%

Pledged Shares

Institutional Holding

ROCE (avg)

12.33%

ROE (avg)

6.42%

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

2.94

EV to EBIT

63.55

EV to EBITDA

21.88

EV to Capital Employed

5.77

EV to Sales

4.61

PEG Ratio

72.43

Dividend Yield

1.11%

ROCE (Latest)

9.08%

ROE (Latest)

4.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 333.76 MM

RAW MATERIAL COST(Y)

Fallen by -6.75% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -47.49 %

DEBTORS TURNOVER RATIO(HY)

Highest at 12.62 times

NET SALES(Q)

Highest at CNY 233.57 MM

PRE-TAX PROFIT(Q)

Highest at CNY 41.51 MM

NET PROFIT(Q)

Highest at CNY 33.66 MM

EPS(Q)

Highest at CNY 0.06

-2What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 29.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.5 %

Here's what is working for Gansu Guofang Industry & Trade Group Co., Ltd.

Pre-Tax Profit

At CNY 41.51 MM has Grown at 210.97%

over average net sales of the previous four periods of CNY 13.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 33.66 MM has Grown at 160.33%

over average net sales of the previous four periods of CNY 12.93 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 333.76 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 233.57 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 233.57 MM has Grown at 16.74%

over average net sales of the previous four periods of CNY 200.08 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 41.51 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 33.66 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -47.49 %

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 12.62 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 -6.75% (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 Gansu Guofang Industry & Trade Group Co., Ltd.

Operating Profit

Lowest at CNY 29.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.5 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales