GDH Guangnan (Holdings) Ltd. (1203) 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

GDH Guangnan (Holdings) Ltd.

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Xingda International Holdings Ltd.

China Oriental Group Co. Ltd.

Newton Resources Ltd.

Aowei Holding Ltd.

Maanshan Iron & Steel Co., Ltd.

Angang Steel Co., Ltd.

Da Ming International Holdings Ltd.

Huajin International Holdings Ltd.

IRC Ltd. (Hong Kong)

Why is GDH Guangnan (Holdings) Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 85.75

Healthy long term growth as Net Sales has grown by an annual rate of % and Operating profit at 0.00%

Negative results in Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 1,043.85
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
RAW MATERIAL COST(Y) Grown by 22.01% (YoY)

With ROE of 4.05%, it has a Attractive valuation with a 0.28 Price to Book Value

Over the past year, while the stock has generated a return of -12.16%, its profits have risen by 118% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -12.16% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong 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 GDH Guangnan (Holdings) Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

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

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

Is GDH Guangnan (Holdings) Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

GDH Guangnan (Holdings) Ltd.

-12.16%

0.42

33.08%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.00%

EBIT Growth (5y)

0.00%

EBIT to Interest (avg)

85.75

Debt to EBITDA (avg)

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

0.67

Tax Ratio

Dividend Payout Ratio

30.08%

Pledged Shares

Institutional Holding

ROCE (avg)

5.22%

ROE (avg)

3.77%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.28

EV to EBIT

11.98

EV to EBITDA

11.98

EV to Capital Employed

0.34

EV to Sales

0.45

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

2.87%

ROE (Latest)

4.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Bearish

OBV

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 336.9 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 25.59 times

-10What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,043.85

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 22.01% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 13.44 times

DIVIDEND PER SHARE(HY)

Lowest at HKD 13.44

OPERATING PROFIT(Q)

Lowest at HKD 127.94 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.11 %

PRE-TAX PROFIT(Q)

Lowest at HKD 56.45 MM

NET PROFIT(Q)

Fallen at -60.96%

Here's what is working for GDH Guangnan (Holdings) Ltd.

Operating Cash Flow

Highest at HKD 336.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Inventory Turnover Ratio

Highest at 25.59 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for GDH Guangnan (Holdings) Ltd.

Interest Coverage Ratio

Lowest at 1,043.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at HKD 127.94 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 2.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD 56.45 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Fallen at -60.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Debtors Turnover Ratio

Lowest at 13.44 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at HKD 13.44

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (HKD)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 22.01% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales