Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. (000636) 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 Fenghua Advanced Technology (Holding) Co., Ltd.

Why is Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.63%

The company has been able to generate a Return on Capital Employed (avg) of 4.63% 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 4.55% and Operating profit at -10.30% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 214.16 MM
INTEREST COVERAGE RATIO(Q) Lowest at 4,295.8
OPERATING PROFIT(Q) Lowest at CNY 59.75 MM

With ROE of 2.48%, it has a expensive valuation with a 4.80 Price to Book Value

Over the past year, while the stock has generated a return of 425.76%, its profits have fallen by -4%
At the current price, the company has a high dividend yield of 0.3

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 Electronics & Appliances)

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

Is Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Fenghua Advanced Technology (Holding) Co., Ltd.

425.76%

7.54

60.80%

China Shanghai Composite

18.87%

1.35

13.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.55%

EBIT Growth (5y)

-10.30%

EBIT to Interest (avg)

13.05

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

0.37

Tax Ratio

10.39%

Dividend Payout Ratio

40.50%

Pledged Shares

Institutional Holding

ROCE (avg)

4.63%

ROE (avg)

5.29%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

193

Industry P/E

Price to Book Value

4.80

EV to EBIT

334.49

EV to EBITDA

78.96

EV to Capital Employed

5.86

EV to Sales

9.53

PEG Ratio

Dividend Yield

0.29%

ROCE (Latest)

1.75%

ROE (Latest)

2.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

5What is working for the Company

NET SALES(HY)

At CNY 3,162.74 MM has Grown at 19.99%

RAW MATERIAL COST(Y)

Fallen by -6.05% (YoY

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 214.16 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 4,295.8

OPERATING PROFIT(Q)

Lowest at CNY 59.75 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.95 %

Here's what is working for Guangdong Fenghua Advanced Technology (Holding) Co., Ltd.

Net Sales

At CNY 3,162.74 MM has Grown at 19.99%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -6.05% (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 Fenghua Advanced Technology (Holding) Co., Ltd.

Interest Coverage Ratio

Lowest at 4,295.8

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 214.16 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 59.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales