Guang Zhou Huayan Precision Machinery 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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guang Zhou Huayan Precision Machinery Co., Ltd.

Why is Guang Zhou Huayan Precision Machinery Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.21% and Operating profit at 0.50% over the last 5 years

Negative results in Mar 26

INTEREST(HY) At CNY 0.29 MM has Grown at 18.72%
RAW MATERIAL COST(Y) Grown by 5.36% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 0.88 times

Below par performance in long term as well as near term

Along with generating -2.58% 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 Industrial Manufacturing)

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

Is Guang Zhou Huayan Precision Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guang Zhou Huayan Precision Machinery Co., Ltd.

-2.58%

1.20

45.03%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.21%

EBIT Growth (5y)

0.50%

EBIT to Interest (avg)

75.53

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

0.56

Tax Ratio

14.84%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

22.84%

ROE (avg)

8.21%

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

0.68

EV to EBIT

0.83

EV to EBITDA

0.65

EV to Capital Employed

0.19

EV to Sales

0.13

PEG Ratio

Dividend Yield

1.81%

ROCE (Latest)

22.93%

ROE (Latest)

8.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

2What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 22,463.99

-18What is not working for the Company

INTEREST(HY)

At CNY 0.29 MM has Grown at 18.72%

RAW MATERIAL COST(Y)

Grown by 5.36% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.88 times

NET SALES(Q)

Lowest at CNY 126.06 MM

OPERATING PROFIT(Q)

Lowest at CNY 13.86 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11 %

PRE-TAX PROFIT(Q)

Lowest at CNY 12.79 MM

NET PROFIT(Q)

Lowest at CNY 10.44 MM

EPS(Q)

Lowest at CNY 0.09

Here's what is working for Guang Zhou Huayan Precision Machinery Co., Ltd.

Interest Coverage Ratio

Highest at 22,463.99

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Here's what is not working for Guang Zhou Huayan Precision Machinery Co., Ltd.

Interest

At CNY 0.29 MM has Grown at 18.72%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 126.06 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 13.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 12.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 10.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

Fallen at -25.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 0.88 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 5.36% (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