Gia Lai Electricity JSC (GEG) 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

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Vietnam Power Development JSC

Gia Lai Electricity JSC

Thac Mo Hydro Power JSC

Central Hydropower JSC

Petrovietnam Power Corp.

Southern Hydropower JSC

Pha Lai Thermal Power JSC

Vinacomin - Power Holding Corp.

Why is Gia Lai Electricity JSC ?

Poor Management Efficiency with a low ROCE of 7.29%

The company has been able to generate a Return on Capital Employed (avg) of 7.29% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 7.29% signifying low profitability per unit of total capital (equity and debt)

Healthy long term growth as Net Sales has grown by an annual rate of 17.70% and Operating profit at 18.65%

NET PROFIT(HY) At VND 198,803.72 MM has Grown at 2,156.12%
NET SALES(HY) At VND 1,295,667.23 MM has Grown at 25.7%
ROCE(HY) Highest at 12.73%

With ROE of 13.95%, it has a fair valuation with a 1.14 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 15.18%, its profits have risen by 412% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 3.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gia Lai Electricity JSC 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 Gia Lai Electricity JSC for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gia Lai Electricity JSC

15.18%

0.23

31.68%

Vietnam VN Ho Chi Minh Index

43.59%

1.93

22.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.70%

EBIT Growth (5y)

18.65%

EBIT to Interest (avg)

1.55

Debt to EBITDA (avg)

5.37

Net Debt to Equity (avg)

1.79

Sales to Capital Employed (avg)

0.16

Tax Ratio

10.99%

Dividend Payout Ratio

358.65%

Pledged Shares

Institutional Holding

ROCE (avg)

7.29%

ROE (avg)

6.31%

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

1.14

EV to EBIT

9.56

EV to EBITDA

6.07

EV to Capital Employed

1.05

EV to Sales

4.71

PEG Ratio

0.02

Dividend Yield

3.79%

ROCE (Latest)

11.02%

ROE (Latest)

13.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

22What is working for the Company

NET PROFIT(HY)

At VND 198,803.72 MM has Grown at 2,156.12%

NET SALES(HY)

At VND 1,295,667.23 MM has Grown at 25.7%

ROCE(HY)

Highest at 12.73%

DEBT-EQUITY RATIO (HY)

Lowest at 150.79 %

INVENTORY TURNOVER RATIO(HY)

Highest at 14.05 times

RAW MATERIAL COST(Y)

Fallen by -10.72% (YoY

-7What is not working for the Company

PRE-TAX PROFIT(Q)

At VND 98,726.29 MM has Fallen at -51.42%

INTEREST(Q)

At VND 193,441.31 MM has Grown at 12.29%

NET PROFIT(Q)

At VND 70,953.33 MM has Fallen at -43.4%

Here's what is working for Gia Lai Electricity JSC

Net Sales

At VND 1,295,667.23 MM has Grown at 25.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (VND MM)

Debt-Equity Ratio

Lowest at 150.79 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 14.05 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -10.72% (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 Gia Lai Electricity JSC

Pre-Tax Profit

At VND 98,726.29 MM has Fallen at -51.42%

over average net sales of the previous four periods of VND 203,242.94 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (VND MM)

Interest

At VND 193,441.31 MM has Grown at 12.29%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (VND MM)

Net Profit

At VND 70,953.33 MM has Fallen at -43.4%

over average net sales of the previous four periods of VND 125,369.88 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (VND MM)