GD Power Development Co., Ltd. (600795) 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

GD Power Development Co., Ltd.

Why is GD Power Development Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.66%

Poor long term growth as Net Sales has grown by an annual rate of 8.62% and Operating profit at 12.76% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Mar 25

DEBTORS TURNOVER RATIO(HY) Lowest at 6.11%
INTEREST COVERAGE RATIO(Q) Lowest at 330.57
NET SALES(Q) Lowest at CNY 39,433.28 MM

With ROE of 23.00%, it has a very attractive valuation with a 1.71 Price to Book Value

Over the past year, while the stock has generated a return of 22.39%, its profits have fallen by -19.3%
At the current price, the company has a high dividend yield of 3.8

Market Beating performance in long term as well as near term

Along with generating 22.39% 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 GD Power Development Co., Ltd. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

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

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

Is GD Power Development Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

GD Power Development Co., Ltd.

22.39%

-0.18

20.47%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.62%

EBIT Growth (5y)

12.76%

EBIT to Interest (avg)

2.18

Debt to EBITDA (avg)

7.07

Net Debt to Equity (avg)

4.70

Sales to Capital Employed (avg)

0.55

Tax Ratio

20.91%

Dividend Payout Ratio

36.28%

Pledged Shares

Institutional Holding

ROCE (avg)

5.66%

ROE (avg)

17.81%

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

1.71

EV to EBIT

19.40

EV to EBITDA

9.45

EV to Capital Employed

1.12

EV to Sales

2.27

PEG Ratio

Dividend Yield

3.79%

ROCE (Latest)

5.78%

ROE (Latest)

23.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 64,646.06 MM

ROCE(HY)

Highest at 18.12%

RAW MATERIAL COST(Y)

Fallen by -5.04% (YoY

-8What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.11%

INTEREST COVERAGE RATIO(Q)

Lowest at 330.57

NET SALES(Q)

Lowest at CNY 39,433.28 MM

OPERATING PROFIT(Q)

Lowest at CNY 4,673.48 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.85 %

Here's what is working for GD Power Development Co., Ltd.

Operating Cash Flow

Highest at CNY 64,646.06 MM and Grown

In each year 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 -5.04% (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 GD Power Development Co., Ltd.

Interest Coverage Ratio

Lowest at 330.57

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 6.11% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at CNY 39,433.28 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 39,433.28 MM has Fallen at -11.04%

over average net sales of the previous four periods of CNY 44,327.46 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 4,673.48 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 11.85 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales