Gosuncn Technology Group Co., Ltd. (300098) 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

Gosuncn Technology Group Co., Ltd.

Why is Gosuncn Technology Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of -1.85% and Operating profit at 14.61% over the last 5 years

With a growth in Operating Profit of 109.66%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 4 consecutive quarters
NET PROFIT(Q) At CNY 23.21 MM has Grown at 1,060.8%
OPERATING CASH FLOW(Y) Highest at CNY 230.27 MM
ROCE(HY) Highest at -0.27%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -12.45%, its profits have risen by 101.4% ; the PEG ratio of the company is 24.9

Below par performance in long term as well as near term

Along with generating -12.45% returns in the last 1 year, the stock has also underperformed 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 Gosuncn Technology Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Gosuncn Technology Group Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Gosuncn Technology Group Co., Ltd.

-12.45%

0.63

38.60%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.85%

EBIT Growth (5y)

14.61%

EBIT to Interest (avg)

-27.30

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.53

Tax Ratio

15.01%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.07%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

2525

Industry P/E

Price to Book Value

3.45

EV to EBIT

-313.80

EV to EBITDA

1035.57

EV to Capital Employed

3.30

EV to Sales

4.39

PEG Ratio

24.90

Dividend Yield

ROCE (Latest)

-1.05%

ROE (Latest)

0.14%

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

Mildly Bearish

OBV

Mildly Bearish

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

28What is working for the Company

NET PROFIT(Q)

At CNY 23.21 MM has Grown at 1,060.8%

OPERATING CASH FLOW(Y)

Highest at CNY 230.27 MM

ROCE(HY)

Highest at -0.27%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.85 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.19 times

NET SALES(Q)

At CNY 510.15 MM has Grown at 35.61%

PRE-TAX PROFIT(Q)

Highest at CNY 39.71 MM

-4What is not working for the Company

INTEREST(HY)

At CNY 2.87 MM has Grown at 6.71%

DEBT-EQUITY RATIO (HY)

Highest at 6.76 %

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

Pre-Tax Profit

At CNY 39.71 MM has Grown at 491.3%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 23.21 MM has Grown at 1,060.8%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 230.27 MM

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 510.15 MM has Grown at 35.61%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 39.71 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 2.85 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 1.19 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 Gosuncn Technology Group Co., Ltd.

Interest

At CNY 2.87 MM has Grown at 6.71%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 6.76 % and Grown

In each half year 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