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 2.86% and Operating profit at -9.78% over the last 5 years
The company is Net-Debt Free

With ROE of 8.08%, it has a very expensive valuation with a 0.65 Price to Book Value

Over the past year, while the stock has generated a return of -25.68%, its profits have risen by 23.2% ; the PEG ratio of the company is 0.4

Below par performance in long term as well as near term

Along with generating -25.68% 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 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, Low Return

Absolute

Risk Adjusted

Volatility

Guangdong Chant Group, Inc.

-24.75%

-0.06

33.97%

China Shanghai Composite

18.87%

1.36

13.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.86%

EBIT Growth (5y)

-9.78%

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

0.65

EV to EBIT

20.75

EV to EBITDA

10.46

EV to Capital Employed

0.84

EV to Sales

1.86

PEG Ratio

0.35

Dividend Yield

12.23%

ROCE (Latest)

4.04%

ROE (Latest)

8.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 822.93 MM

CASH AND EQV(HY)

Highest at CNY 1,814.6 MM

DEBT-EQUITY RATIO (HY)

Lowest at 114.86 %

PRE-TAX PROFIT(Q)

Highest at CNY 123.11 MM

NET PROFIT(Q)

Highest at CNY 99.42 MM

EPS(Q)

Highest at CNY 0.12

-6What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.99 times

RAW MATERIAL COST(Y)

Grown by 9.83% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.61 times

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

Operating Cash Flow

Highest at CNY 822.93 MM

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

Highest at CNY 123.11 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 99.42 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.12

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 1,814.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 114.86 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Guangdong Chant Group, Inc.

Debtors Turnover Ratio

Lowest at 0.99 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

Inventory Turnover Ratio

Lowest at 10.61 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 9.83% (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