Greentown Management Holdings Co., Ltd. (9979) 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

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Why is Greentown Management Holdings Co., Ltd. ?

High Management Efficiency with a high ROE of 20.13%

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 8.64%

The company has declared negative results in Dec'2024 after 5 consecutive positive quarters

ROCE(HY) Lowest at 15.57%
DEBTORS TURNOVER RATIO(HY) Lowest at 1.13 times
RAW MATERIAL COST(Y) Grown by 23.51% (YoY)

With ROE of 23.19%, it has a Very Attractive valuation with a 1.43 Price to Book Value

Over the past year, while the stock has generated a return of -22.22%, its profits have fallen by -17.4%

Below par performance in long term as well as near term

Along with generating -22.22% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong 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 Greentown Management Holdings 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 Greentown Management Holdings Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Greentown Management Holdings Co., Ltd.

-22.22%

-1.87

35.79%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.64%

EBIT Growth (5y)

7.47%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

0.78

Tax Ratio

24.31%

Dividend Payout Ratio

59.44%

Pledged Shares

Institutional Holding

ROCE (avg)

55.52%

ROE (avg)

20.13%

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

1.43

EV to EBIT

3.53

EV to EBITDA

3.26

EV to Capital Employed

1.80

EV to Sales

1.06

PEG Ratio

Dividend Yield

0.35%

ROCE (Latest)

50.96%

ROE (Latest)

23.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Bearish

No Trend

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

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 59.8%

DIVIDEND PER SHARE(HY)

Highest at HKD 1.13

-11What is not working for the Company

ROCE(HY)

Lowest at 15.57%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.13 times

RAW MATERIAL COST(Y)

Grown by 23.51% (YoY

NET SALES(Q)

Lowest at HKD 1,476.16 MM

OPERATING PROFIT(Q)

Lowest at HKD 370.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 25.08 %

PRE-TAX PROFIT(Q)

Lowest at HKD 376.75 MM

NET PROFIT(Q)

Lowest at HKD 275.12 MM

EPS(Q)

Lowest at HKD 0.14

Here's what is working for Greentown Management Holdings Co., Ltd.

Dividend per share

Highest at HKD 1.13

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Dividend Payout Ratio

Highest at 59.8%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Greentown Management Holdings Co., Ltd.

Debtors Turnover Ratio

Lowest at 1.13 times 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

Net Sales

Lowest at HKD 1,476.16 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Operating Profit

Lowest at HKD 370.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 25.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD 376.75 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 275.12 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.14

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Raw Material Cost

Grown by 23.51% (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