Guangdong CHJ Industry Co., Ltd. (002345) 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 CHJ Industry Co., Ltd.

Why is Guangdong CHJ Industry Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 20.11% and Operating profit at 23.55% over the last 5 years

Flat results in Sep 25

ROCE(HY) Lowest at 5.35%
INTEREST COVERAGE RATIO(Q) Lowest at 295.92
OPERATING PROFIT(Q) Lowest at CNY 24.88 MM

With ROE of 9.76%, it has a very attractive valuation with a 2.58 Price to Book Value

Over the past year, while the stock has generated a return of 4.74%, its profits have risen by 4.8% ; the PEG ratio of the company is 5.5
At the current price, the company has a high dividend yield of 3.4

Underperformed the market in the last 1 year

The stock has generated a return of 4.74% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.32%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong CHJ Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

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

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

Is Guangdong CHJ Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong CHJ Industry Co., Ltd.

4.74%

1.41

55.35%

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)

20.11%

EBIT Growth (5y)

23.55%

EBIT to Interest (avg)

9.29

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

1.65

Tax Ratio

25.18%

Dividend Payout Ratio

80.44%

Pledged Shares

Institutional Holding

ROCE (avg)

10.74%

ROE (avg)

8.68%

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

2.58

EV to EBIT

17.71

EV to EBITDA

15.01

EV to Capital Employed

2.77

EV to Sales

1.11

PEG Ratio

5.51

Dividend Yield

3.40%

ROCE (Latest)

15.63%

ROE (Latest)

9.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

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

8What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -10.02 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.98 times

DEBTORS TURNOVER RATIO(HY)

Highest at 20.73 times

NET SALES(Q)

At CNY 2,134.96 MM has Grown at 18.8%

-16What is not working for the Company

ROCE(HY)

Lowest at 5.35%

INTEREST COVERAGE RATIO(Q)

Lowest at 295.92

OPERATING PROFIT(Q)

Lowest at CNY 24.88 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.17 %

PRE-TAX PROFIT(Q)

Lowest at CNY 23.24 MM

NET PROFIT(Q)

Lowest at CNY -14.14 MM

Here's what is working for Guangdong CHJ Industry Co., Ltd.

Net Sales

At CNY 2,134.96 MM has Grown at 18.8%

over average net sales of the previous four periods of CNY 1,797.05 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at -10.02 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.98 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 20.73 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Guangdong CHJ Industry Co., Ltd.

Pre-Tax Profit

At CNY 23.24 MM has Fallen at -83.25%

over average net sales of the previous four periods of CNY 138.73 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -14.14 MM has Fallen at -111.98%

over average net sales of the previous four periods of CNY 118.07 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 295.92

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 24.88 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 23.24 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 -14.14 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Non Operating Income

Highest at CNY 0.29 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income