Grandblue Environment Co., Ltd. (600323) 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

Grandblue Environment Co., Ltd.

Why is Grandblue Environment Co., Ltd. ?

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

Poor long term growth as Net Sales has grown by an annual rate of 12.92% and Operating profit at 16.31% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 12.47% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 393.86
DEBT-EQUITY RATIO (HY) Highest at 219.46 %
INVENTORY TURNOVER RATIO(HY) Lowest at 29.33 times

With ROE of 13.41%, it has a very attractive valuation with a 1.62 Price to Book Value

Over the past year, while the stock has generated a return of 30.81%, its profits have risen by 12.4% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 2.9

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Grandblue Environment Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Grandblue Environment Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Grandblue Environment Co., Ltd.

12.04%

1.64

24.26%

China Shanghai Composite

16.78%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.07%

EBIT Growth (5y)

18.01%

EBIT to Interest (avg)

3.95

Debt to EBITDA (avg)

4.13

Net Debt to Equity (avg)

0.81

Sales to Capital Employed (avg)

0.36

Tax Ratio

20.20%

Dividend Payout Ratio

43.39%

Pledged Shares

Institutional Holding

ROCE (avg)

8.23%

ROE (avg)

12.47%

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

1.52

EV to EBIT

15.25

EV to EBITDA

11.01

EV to Capital Employed

1.17

EV to Sales

3.62

PEG Ratio

0.19

Dividend Yield

3.65%

ROCE (Latest)

7.68%

ROE (Latest)

16.88%

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

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 4,117.73 MM

NET SALES(HY)

At CNY 7,856.51 MM has Grown at 36.5%

ROCE(HY)

Highest at 14.69%

RAW MATERIAL COST(Y)

Fallen by -21.98% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 36.19 times

-15What is not working for the Company

INTEREST(HY)

At CNY 518.62 MM has Grown at 108.02%

INTEREST COVERAGE RATIO(Q)

Lowest at 396.48

OPERATING PROFIT MARGIN(Q)

Lowest at 26.44 %

Here's what is working for Grandblue Environment Co., Ltd.

Operating Cash Flow

Highest at CNY 4,117.73 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 7,856.51 MM has Grown at 36.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 36.19 times

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 -21.98% (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 Grandblue Environment Co., Ltd.

Interest

At CNY 518.62 MM has Grown at 108.02%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 396.48 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 26.44 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales