Glarun Technology Co., Ltd. (600562) 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

Glarun Technology Co., Ltd.

Why is Glarun Technology Co., Ltd. ?

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At CNY 3.74 MM has Grown at 31.36%
OPERATING CASH FLOW(Y) Lowest at CNY -218.58 MM
ROCE(HY) Lowest at 10.03%

With ROE of 10.32%, it has a expensive valuation with a 6.08 Price to Book Value

Over the past year, while the stock has generated a return of 31.53%, its profits have risen by 3.5% ; the PEG ratio of the company is 26.5
At the current price, the company has a high dividend yield of 0.5

Market Beating Performance

The stock has generated a return of 31.53% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Glarun Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

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

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

Is Glarun Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Glarun Technology Co., Ltd.

31.53%

1.82

47.72%

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)

7.99%

EBIT Growth (5y)

25.06%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.53

Tax Ratio

12.40%

Dividend Payout Ratio

30.96%

Pledged Shares

Institutional Holding

ROCE (avg)

13.41%

ROE (avg)

11.04%

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

6.08

EV to EBIT

52.47

EV to EBITDA

48.99

EV to Capital Employed

6.58

EV to Sales

10.49

PEG Ratio

26.47

Dividend Yield

0.52%

ROCE (Latest)

12.54%

ROE (Latest)

10.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -23.76% (YoY

-23What is not working for the Company

INTEREST(HY)

At CNY 3.74 MM has Grown at 31.36%

OPERATING CASH FLOW(Y)

Lowest at CNY -218.58 MM

ROCE(HY)

Lowest at 10.03%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.67%

INTEREST COVERAGE RATIO(Q)

Lowest at 7,043.05

DEBT-EQUITY RATIO (HY)

Highest at -2.63 %

NET SALES(Q)

Lowest at CNY 360.28 MM

PRE-TAX PROFIT(Q)

Fallen at -33.7%

NET PROFIT(Q)

Fallen at -34.81%

Here's what is working for Glarun Technology Co., Ltd.

Raw Material Cost

Fallen by -23.76% (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 Glarun Technology Co., Ltd.

Interest

At CNY 3.74 MM has Grown at 31.36%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 360.28 MM has Fallen at -35.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 7,043.05

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 0.67% 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

Operating Cash Flow

Lowest at CNY -218.58 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 360.28 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

Fallen at -33.7%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -34.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at -2.63 %

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