GRG Banking Equipment Co., Ltd.

Market Cap: Large Cap
Industry: Electronics & Appliances
ISIN: CNE100000650

CNY

9.26

-0.5 (-5.12%)

Jun 26

SHE

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Score

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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 13.14% and Operating profit at 4.93% over the last 5 years

Flat results in Mar 26

ROCE(HY) Lowest at 6.65%

With ROE of 9.13%, it has a fair valuation with a 1.92 Price to Book Value

Over the past year, while the stock has generated a return of -28.65%, its profits have risen by 1.5% ; the PEG ratio of the company is 14.3
At the current price, the company has a high dividend yield of 3.8

Below par performance in long term as well as near term

Along with generating -28.65% 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 GRG Banking Equipment 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 GRG Banking Equipment Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

GRG Banking Equipment Co., Ltd.

-32.75%

-0.28

28.80%

China Shanghai Composite

16.78%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.14%

EBIT Growth (5y)

4.93%

EBIT to Interest (avg)

44.93

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.60

Sales to Capital Employed (avg)

0.67

Tax Ratio

10.31%

Dividend Payout Ratio

106.75%

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

1.92

EV to EBIT

14.83

EV to EBITDA

12.59

EV to Capital Employed

4.08

EV to Sales

1.27

PEG Ratio

14.27

Dividend Yield

3.77%

ROCE (Latest)

27.51%

ROE (Latest)

9.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.53% (YoY

CASH AND EQV(HY)

Highest at CNY 29,212.62 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.89 times

-2What is not working for the Company

ROCE(HY)

Lowest at 6.65%

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

Cash and Eqv

Highest at CNY 29,212.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.89 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 -7.53% (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