Guangdong Brandmax Marketing Co., Ltd. (300805) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guangdong Brandmax Marketing Co., Ltd.

Why is Guangdong Brandmax Marketing Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.44%

The company has been able to generate a Return on Capital Employed (avg) of 3.44% 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 -6.17% and Operating profit at -53.01% over the last 5 years

Positive results in Mar 25

NET PROFIT(HY) Higher at CNY 13.1 MM
INVENTORY TURNOVER RATIO(HY) Highest at 34.03%
PRE-TAX PROFIT(Q) At CNY 7.08 MM has Grown at 70.48%

With ROE of 1.75%, it has a very expensive valuation with a 0.95 Price to Book Value

Over the past year, while the stock has generated a return of 27.05%, its profits have risen by 101.3% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 0.6

Market Beating Performance

The stock has generated a return of 27.05% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong Brandmax Marketing Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Guangdong Brandmax Marketing Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Brandmax Marketing Co., Ltd.

-100.0%

1.13

69.04%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.17%

EBIT Growth (5y)

-53.01%

EBIT to Interest (avg)

6.65

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

1.34

Tax Ratio

2.19%

Dividend Payout Ratio

60.24%

Pledged Shares

Institutional Holding

ROCE (avg)

3.44%

ROE (avg)

2.19%

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

0.95

EV to EBIT

150.56

EV to EBITDA

24.30

EV to Capital Employed

0.92

EV to Sales

0.33

PEG Ratio

0.54

Dividend Yield

0.57%

ROCE (Latest)

0.61%

ROE (Latest)

1.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

8What is working for the Company

NET PROFIT(HY)

Higher at CNY 13.1 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 34.03%

PRE-TAX PROFIT(Q)

At CNY 7.08 MM has Grown at 70.48%

-16What is not working for the Company

INTEREST(HY)

At CNY 1.34 MM has Grown at 87.53%

OPERATING CASH FLOW(Y)

Lowest at CNY -45.95 MM

RAW MATERIAL COST(Y)

Grown by 22.15% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -43.08 %

Here's what is working for Guangdong Brandmax Marketing Co., Ltd.

Net Profit

At CNY 13.1 MM has Grown at 726.05%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Higher at CNY 13.1 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 7.08 MM has Grown at 70.48%

over average net sales of the previous four periods of CNY 4.15 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 34.03%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Guangdong Brandmax Marketing Co., Ltd.

Operating Cash Flow

Lowest at CNY -45.95 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 1.13 MM has Grown at 444.95%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 1.13 MM

in the last five periods and Increased by 444.95% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -43.08 %

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

Raw Material Cost

Grown by 22.15% (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