Guangdong Advertising Group Co. Ltd. (002400) 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

Guangdong Advertising Group Co. Ltd.

Why is Guangdong Advertising Group Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 2.86%

The company has been able to generate a Return on Capital Employed (avg) of 2.86% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 12.56% and Operating profit at 4.11% over the last 5 years

Negative results in Sep 25

INTEREST(Q) At CNY 12.8 MM has Grown at 37.04%
INTEREST COVERAGE RATIO(Q) Lowest at 43.58
DEBT-EQUITY RATIO (HY) Highest at 45.74 %

With ROE of 1.77%, it has a very expensive valuation with a 3.13 Price to Book Value

Over the past year, while the stock has generated a return of 5.12%, its profits have fallen by -27.8%
At the current price, the company has a high dividend yield of 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 5.12% in the last 1 year, much lower than market (China Shanghai Composite) returns of 17.07%

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 Media & Entertainment)

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

Is Guangdong Advertising Group Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Advertising Group Co. Ltd.

5.12%

1.57

48.39%

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)

12.56%

EBIT Growth (5y)

4.11%

EBIT to Interest (avg)

8.04

Debt to EBITDA (avg)

2.88

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

2.81

Tax Ratio

34.74%

Dividend Payout Ratio

31.09%

Pledged Shares

Institutional Holding

0.07%

ROCE (avg)

2.86%

ROE (avg)

4.28%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

176

Industry P/E

Price to Book Value

3.13

EV to EBIT

92.97

EV to EBITDA

61.76

EV to Capital Employed

2.54

EV to Sales

0.78

PEG Ratio

Dividend Yield

0.19%

ROCE (Latest)

2.73%

ROE (Latest)

1.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

DIVIDEND PAYOUT RATIO(Y)

Highest at 54.46%

RAW MATERIAL COST(Y)

Fallen by -23.9% (YoY

DIVIDEND PER SHARE(HY)

Highest at CNY 5

-23What is not working for the Company

INTEREST(Q)

At CNY 12.8 MM has Grown at 37.04%

INTEREST COVERAGE RATIO(Q)

Lowest at 43.58

DEBT-EQUITY RATIO (HY)

Highest at 45.74 %

NET SALES(Q)

Fallen at -12.29%

OPERATING PROFIT(Q)

Lowest at CNY 5.58 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.1 %

PRE-TAX PROFIT(Q)

Lowest at CNY 2.26 MM

NET PROFIT(Q)

Lowest at CNY -0.64 MM

Here's what is working for Guangdong Advertising Group Co. Ltd.

Dividend per share

Highest at CNY 5

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 54.46%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -23.9% (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 Guangdong Advertising Group Co. Ltd.

Pre-Tax Profit

At CNY 2.26 MM has Fallen at -94.18%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -0.64 MM has Fallen at -101.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 12.8 MM has Grown at 37.04%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 43.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Fallen at -12.29%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 5.58 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 2.26 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 -0.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 45.74 %

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