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 21.22% and Operating profit at 23.83% over the last 5 years

With a growth in Net Profit of 46.38%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
NET SALES(HY) At CNY 5,579.43 MM has Grown at 42.67%
ROCE(HY) Highest at 14.76%
RAW MATERIAL COST(Y) Fallen by -23.08% (YoY)

With ROE of 16.75%, it has a fair valuation with a 1.87 Price to Book Value

Over the past year, while the stock has generated a return of -35.96%, its profits have risen by 66.5% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 5.3

Below par performance in long term as well as near term

Along with generating -35.96% 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 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.

-35.96%

1.18

50.40%

China Shanghai Composite

16.78%

1.20

13.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.22%

EBIT Growth (5y)

23.83%

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

1.87

EV to EBIT

8.02

EV to EBITDA

7.29

EV to Capital Employed

1.83

EV to Sales

0.81

PEG Ratio

0.17

Dividend Yield

5.32%

ROCE (Latest)

22.79%

ROE (Latest)

16.75%

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 Bullish

Mildly Bearish

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

22What is working for the Company

NET SALES(HY)

At CNY 5,579.43 MM has Grown at 42.67%

ROCE(HY)

Highest at 14.76%

RAW MATERIAL COST(Y)

Fallen by -23.08% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 14.47 %

PRE-TAX PROFIT(Q)

At CNY 352.49 MM has Grown at 71.47%

NET PROFIT(Q)

At CNY 263.49 MM has Grown at 68.5%

EPS(Q)

Highest at CNY 0.3

-8What is not working for the Company

INTEREST(Q)

Highest at CNY 13.27 MM

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

Net Sales

At CNY 5,579.43 MM has Grown at 42.67%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Profit Margin

Highest at 14.47 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CNY 352.49 MM has Grown at 71.47%

over average net sales of the previous four periods of CNY 205.57 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 263.49 MM has Grown at 68.5%

over average net sales of the previous four periods of CNY 156.37 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.3

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -23.08% (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 CHJ Industry Co., Ltd.

Interest

At CNY 13.27 MM has Grown at 36.94%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 13.27 MM

in the last five periods and Increased by 36.94% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)