Gansu Yasheng Industrial (Group) Co., Ltd. (600108) 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 Yasheng Industrial (Group) Co., Ltd.

Why is Gansu Yasheng Industrial (Group) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.06%

The company has been able to generate a Return on Capital Employed (avg) of 2.06% 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 8.53% and Operating profit at 12.76% 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 1.55% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.53% and Operating profit at 12.76% over the last 5 years

Negative results in Sep 25

DEBT-EQUITY RATIO (HY) Highest at 91.03 %
INTEREST COVERAGE RATIO(Q) Lowest at 91.56
CASH AND EQV(HY) Lowest at CNY 743.51 MM

With ROE of 2.19%, it has a expensive valuation with a 1.32 Price to Book Value

Over the past year, while the stock has generated a return of 69.96%, its profits have fallen by -0.6%
At the current price, the company has a high dividend yield of 0.2

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 Other Agricultural Products)

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

Is Gansu Yasheng Industrial (Group) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Gansu Yasheng Industrial (Group) Co., Ltd.

6.78%

2.81

34.32%

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)

5.26%

EBIT Growth (5y)

17.63%

EBIT to Interest (avg)

0.78

Debt to EBITDA (avg)

15.61

Net Debt to Equity (avg)

0.80

Sales to Capital Employed (avg)

0.51

Tax Ratio

6.12%

Dividend Payout Ratio

10.27%

Pledged Shares

Institutional Holding

ROCE (avg)

2.06%

ROE (avg)

1.55%

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

1.48

EV to EBIT

90.13

EV to EBITDA

29.19

EV to Capital Employed

1.25

EV to Sales

2.43

PEG Ratio

Dividend Yield

0.17%

ROCE (Latest)

1.39%

ROE (Latest)

1.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 160.57 MM

RAW MATERIAL COST(Y)

Fallen by -14.97% (YoY

-25What is not working for the Company

INTEREST(HY)

At CNY 72.01 MM has Grown at 34.73%

NET PROFIT(HY)

At CNY 54.57 MM has Grown at -35.28%

INTEREST COVERAGE RATIO(Q)

Lowest at 150.17

ROCE(HY)

Lowest at 1.24%

DEBT-EQUITY RATIO (HY)

Highest at 93.57 %

OPERATING PROFIT(Q)

Lowest at CNY 47.26 MM

CASH AND EQV(HY)

Lowest at CNY 728.57 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.13 times

NET SALES(Q)

Lowest at CNY 625.74 MM

Here's what is working for Gansu Yasheng Industrial (Group) Co., Ltd.

Operating Cash Flow

Highest at CNY 160.57 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -14.97% (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 Yasheng Industrial (Group) Co., Ltd.

Interest

At CNY 72.01 MM has Grown at 34.73%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 150.17 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 54.57 MM has Grown at -35.28%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 47.26 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Debt-Equity Ratio

Highest at 93.57 % and Grown

In each half year 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

Net Sales

Lowest at CNY 625.74 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 728.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.13 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio