Great Wall Motor 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Minth Group Ltd.

Great Wall Motor Co., Ltd.

Yadea Group Holdings Ltd.

Li Auto, Inc.

Guangzhou Automobile Group Co., Ltd.

Zhejiang Leapmotor Technology Co., Ltd.

Dongfeng Motor Group Co., Ltd.

Brilliance China Automotive Holdings Ltd.

XPeng, Inc.

NIO, Inc.

Geely Automobile Holdings Ltd.

Why is Great Wall Motor Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 8.94

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 6.07%

The company declared positive results in Dec'23 after flat results in Jun'23

PBT LESS OI(Q) At HKD 2,333 MM has Grown at 179.9 %
PAT(Q) At HKD 2,176 MM has Grown at 54.3 %
INVENTORY TURNOVER RATIO(HY) Highest at times

With ROE of 14.06%, it has a Very Expensive valuation with a 0.47 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 7.46%, its profits have fallen by -4.6%

Underperformed the market in the last 1 year

The stock has generated a return of 7.46% in the last 1 year, much lower than market (Hang Seng Hong Kong) returns of 27.36%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Great Wall Motor Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Great Wall Motor Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Great Wall Motor Co., Ltd.

7.46%

0.62

45.71%

Hang Seng Hong Kong

27.36%

1.06

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.71%

EBIT Growth (5y)

8.31%

EBIT to Interest (avg)

8.94

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

1.13

Tax Ratio

9.98%

Dividend Payout Ratio

30.45%

Pledged Shares

Institutional Holding

0.26%

ROCE (avg)

6.07%

ROE (avg)

11.75%

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

0.47

EV to EBIT

4.27

EV to EBITDA

2.71

EV to Capital Employed

0.47

EV to Sales

0.20

PEG Ratio

Dividend Yield

2.65%

ROCE (Latest)

10.91%

ROE (Latest)

14.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

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

Not enough Data to analyse Financial Trend

Here's what is working for Great Wall Motor Co., Ltd.

Net Sales - Quarterly

At HKD 58,273 MM has Grown at 39.0 %

over average Net Sales of the previous four periods of HKD 41,937 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (HKD MM)

Profit Before Tax less Other Income (PBT) - Quarterly

At HKD 2,333 MM has Grown at 179.9 %

over average PBT of the previous four periods of HKD 834 MM

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (HKD MM)

Profit After Tax (PAT) - Quarterly

At HKD 2,176 MM has Grown at 54.3 %

over average PAT of the previous four periods of HKD 1,410 MM

MOJO Watch

Near term PAT trend is very positive

PAT (HKD MM)

Net Sales - Quarterly

Highest at HKD 58,273 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Inventory Turnover Ratio- Half Yearly

Highest at times

in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio- Half Yearly

Highest at times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Great Wall Motor Co., Ltd.

Operating Cash Flow - Annually

Lowest at HKD 0.00 MM and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Operating Profit (PBDIT) - Quarterly

Lowest at HKD -121,108 MM.

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin - Quarterly

Lowest at -207.83%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales (HKD MM)

Earnings per Share (EPS) - Quarterly

Lowest at HKD 0.00

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Cash and Cash Equivalents - Half Yearly

Lowest at HKD 0.00 MM

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents (HKD MM)

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00 %

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)