GRG Banking Equipment Co., Ltd. (002152) 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

GRG Banking Equipment Co., Ltd.

Why is GRG Banking Equipment Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.05% and Operating profit at 3.36% over the last 5 years

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

INTEREST(HY) At CNY 36.24 MM has Grown at 7.45%
ROCE(HY) Lowest at 6.79%
INTEREST COVERAGE RATIO(Q) Lowest at 594.29

Below par performance in long term as well as near term

Along with generating -13.66% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is GRG Banking Equipment Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

GRG Banking Equipment Co., Ltd.

-13.66%

0.26

31.61%

China Shanghai Composite

16.67%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.05%

EBIT Growth (5y)

3.36%

EBIT to Interest (avg)

44.93

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.60

Sales to Capital Employed (avg)

0.65

Tax Ratio

10.31%

Dividend Payout Ratio

54.00%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

17.75%

ROE (avg)

9.33%

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

2.72

EV to EBIT

28.25

EV to EBITDA

21.87

EV to Capital Employed

6.61

EV to Sales

2.24

PEG Ratio

Dividend Yield

1.45%

ROCE (Latest)

23.41%

ROE (Latest)

8.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,028.01 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 309.65%

CASH AND EQV(HY)

Highest at CNY 26,210.69 MM

DEBT-EQUITY RATIO (HY)

Lowest at -74.11 %

DIVIDEND PER SHARE(HY)

Highest at CNY 3.08

-16What is not working for the Company

INTEREST(HY)

At CNY 36.24 MM has Grown at 7.45%

ROCE(HY)

Lowest at 6.79%

INTEREST COVERAGE RATIO(Q)

Lowest at 594.29

RAW MATERIAL COST(Y)

Grown by 7.76% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.08 times

OPERATING PROFIT(Q)

Lowest at CNY 100.11 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.8 %

NET PROFIT(Q)

Lowest at CNY 135.67 MM

EPS(Q)

Lowest at CNY 0.05

Here's what is working for GRG Banking Equipment Co., Ltd.

Operating Cash Flow

Highest at CNY 2,028.01 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 26,210.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -74.11 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at CNY 3.08

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 309.65%

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 GRG Banking Equipment Co., Ltd.

Interest Coverage Ratio

Lowest at 594.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 36.24 MM has Grown at 7.45%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 100.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.8 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 135.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 3.08 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 7.76% (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

Non Operating Income

Highest at CNY 0.5 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income