GKG Precision Machine Co., Ltd. () 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

GKG Precision Machine Co., Ltd.

Why is GKG Precision Machine Co., Ltd. ?

With a growth in Net Profit of 95.66%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 7 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 190.01 MM
ROCE(HY) Highest at 13.67%
NET SALES(Q) At CNY 339.65 MM has Grown at 72.8%

With ROE of 13.02%, it has a fair valuation with a 4.75 Price to Book Value

Over the past year, while the stock has generated a return of 500.41%, its profits have risen by 134.7% ; the PEG ratio of the company is 0.3

Market Beating performance in long term as well as near term

Along with generating 500.41% 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 buy?

Overall Portfolio exposure to GKG Precision Machine Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is GKG Precision Machine Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

GKG Precision Machine Co., Ltd.

500.41%

9.86

76.50%

China Shanghai Composite

16.95%

1.25

13.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.03%

EBIT Growth (5y)

20.11%

EBIT to Interest (avg)

52.66

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.56

Sales to Capital Employed (avg)

0.53

Tax Ratio

3.12%

Dividend Payout Ratio

21.57%

Pledged Shares

Institutional Holding

ROCE (avg)

12.34%

ROE (avg)

10.16%

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

4.75

EV to EBIT

37.13

EV to EBITDA

35.52

EV to Capital Employed

8.49

EV to Sales

5.55

PEG Ratio

0.27

Dividend Yield

ROCE (Latest)

22.87%

ROE (Latest)

13.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

No Trend

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

32What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 190.01 MM

ROCE(HY)

Highest at 13.67%

NET SALES(Q)

At CNY 339.65 MM has Grown at 72.8%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

PRE-TAX PROFIT(Q)

Highest at CNY 75.55 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.31 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.84 times

OPERATING PROFIT(Q)

Highest at CNY 64.04 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.85 %

NET PROFIT(Q)

At CNY 64.98 MM has Grown at 95.66%

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 6.88% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -49.96 %

Here's what is working for GKG Precision Machine Co., Ltd.

Operating Cash Flow

Highest at CNY 190.01 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)

Net Sales

At CNY 339.65 MM has Grown at 72.8%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 75.55 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 75.55 MM has Grown at 106.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Profit

Highest at CNY 64.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 18.85 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

At CNY 64.98 MM has Grown at 95.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 1.31 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.84 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for GKG Precision Machine Co., Ltd.

Debt-Equity Ratio

Highest at -49.96 %

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

Raw Material Cost

Grown by 6.88% (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