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Gstarsoft Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Software Products
  • ISIN: CNE100006DJ7
CNY
33.95
-0.44 (-1.28%)

Sep 24

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Gstarsoft Co., Ltd.

Why is Gstarsoft Co., Ltd. ?

1
Poor Management Efficiency with a low ROCE of 1,736.30%
  • The company has been able to generate a Return on Capital Employed (avg) of 1,736.30% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 16.17% and Operating profit at -20.04% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 1,646.13% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 16.17% and Operating profit at -20.04% over the last 5 years
4
Negative results in Jun 26
  • NET PROFIT(9M) At CNY 30.38 MM has Grown at -43.81%
  • INTEREST(HY) At CNY 0.15 MM has Grown at 46.05%
  • ROCE(HY) Lowest at 3.32%
5
With ROE of 3.30%, it has a fair valuation with a 2.11 Price to Book Value
  • Over the past year, while the stock has generated a return of -7.95%, its profits have fallen by -24.7%
  • At the current price, the company has a high dividend yield of 0.2
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Gstarsoft Co., Ltd. should be less than 10%
  2. Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Gstarsoft Co., Ltd. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Gstarsoft Co., Ltd.
-8.92%
-0.11
56.39%
China Shanghai Composite
0.9%
0.22
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
16.17%
EBIT Growth (5y)
-20.04%
EBIT to Interest (avg)
35.46
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.97
Sales to Capital Employed (avg)
0.22
Tax Ratio
8.46%
Dividend Payout Ratio
52.61%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
30.12%
ROE (avg)
1,646.13%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
64
Industry P/E
Price to Book Value
2.11
EV to EBIT
63.36
EV to EBITDA
49.29
EV to Capital Employed
24.91
EV to Sales
4.74
PEG Ratio
NA
Dividend Yield
0.20%
ROCE (Latest)
39.31%
ROE (Latest)
3.30%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CNY 109.51 MM

RAW MATERIAL COST(Y)

Fallen by -0.46% (YoY

NET SALES(Q)

Highest at CNY 106.84 MM

OPERATING PROFIT(Q)

Highest at CNY 20.74 MM

OPERATING PROFIT MARGIN(Q)

Highest at 19.41 %

-17What is not working for the Company
NET PROFIT(9M)

At CNY 30.38 MM has Grown at -43.81%

INTEREST(HY)

At CNY 0.15 MM has Grown at 46.05%

ROCE(HY)

Lowest at 3.32%

DEBT-EQUITY RATIO (HY)

Highest at -91.37 %

Here's what is working for Gstarsoft Co., Ltd.

Operating Cash Flow
Highest at CNY 109.51 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
Highest at CNY 106.84 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Net Sales
At CNY 106.84 MM has Grown at 25.11%
Year on Year (YoY)
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit
Highest at CNY 20.74 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin
Highest at 19.41 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost
Fallen by -0.46% (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 Gstarsoft Co., Ltd.

Interest
At CNY 0.15 MM has Grown at 46.05%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit
At CNY 30.38 MM has Grown at -43.81%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio
Highest at -91.37 %
in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

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