Guangdong Chant Group, Inc. (002616) 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 Chant Group, Inc.

Why is Guangdong Chant Group, Inc. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 4.28%

Poor long term growth as Net Sales has grown by an annual rate of 5.93% and Operating profit at -1.28% over the last 5 years
The company is Net-Debt Free

With ROE of 10.08%, it has a very attractive valuation with a 1.80 Price to Book Value

Over the past year, while the stock has generated a return of -1.04%, its profits have risen by 73.1% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.32% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -1.04% returns

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 Power)

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

Is Guangdong Chant Group, Inc. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Guangdong Chant Group, Inc.

-1.04%

0.84

32.08%

China Shanghai Composite

22.32%

1.71

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.93%

EBIT Growth (5y)

-1.28%

EBIT to Interest (avg)

1.62

Debt to EBITDA (avg)

13.32

Net Debt to Equity (avg)

1.99

Sales to Capital Employed (avg)

0.42

Tax Ratio

23.15%

Dividend Payout Ratio

122.66%

Pledged Shares

Institutional Holding

ROCE (avg)

4.28%

ROE (avg)

6.36%

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

1.80

EV to EBIT

21.30

EV to EBITDA

12.85

EV to Capital Employed

1.29

EV to Sales

2.84

PEG Ratio

0.24

Dividend Yield

2.09%

ROCE (Latest)

6.05%

ROE (Latest)

10.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 825.1 MM

ROCE(HY)

Highest at 10.43%

RAW MATERIAL COST(Y)

Fallen by -22.29% (YoY

CASH AND EQV(HY)

Highest at CNY 1,562.14 MM

DEBT-EQUITY RATIO (HY)

Lowest at 180.97 %

PRE-TAX PROFIT(Q)

At CNY 109.3 MM has Grown at 101.86%

NET PROFIT(Q)

At CNY 81.07 MM has Grown at 99.99%

-9What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.12 times

INTEREST COVERAGE RATIO(Q)

Lowest at 213.3

NET SALES(Q)

Lowest at CNY 850.12 MM

OPERATING PROFIT(Q)

Lowest at CNY 128.94 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.17 %

Here's what is working for Guangdong Chant Group, Inc.

Operating Cash Flow

Highest at CNY 825.1 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)

Pre-Tax Profit

At CNY 109.3 MM has Grown at 101.86%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 81.07 MM has Grown at 99.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,562.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 180.97 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -22.29% (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 Chant Group, Inc.

Interest Coverage Ratio

Lowest at 213.3

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 1.12 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at CNY 850.12 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 128.94 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 15.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales