Guangdong Ganhua Science & Industry Co., Ltd. (000576) 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 Ganhua Science & Industry Co., Ltd.

Why is Guangdong Ganhua Science & Industry Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 1.16% and Operating profit at -37.25% over the last 5 years

With a growth in Net Profit of 64.99%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 2 consecutive quarters
NET SALES(HY) At CNY 264.8 MM has Grown at 32.72%
PRE-TAX PROFIT(Q) Highest at CNY 58.65 MM
NET PROFIT(Q) Highest at CNY 43.19 MM

With ROE of 1.45%, it has a expensive valuation with a 2.84 Price to Book Value

Over the past year, while the stock has generated a return of 23.30%, its profits have risen by 2324% ; the PEG ratio of the company is 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong Ganhua Science & Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Guangdong Ganhua Science & Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Ganhua Science & Industry Co., Ltd.

23.3%

1.04

47.63%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.16%

EBIT Growth (5y)

-37.25%

EBIT to Interest (avg)

17.72

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.23

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.59%

ROE (avg)

10.83%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

196

Industry P/E

Price to Book Value

2.84

EV to EBIT

-425.67

EV to EBITDA

265.24

EV to Capital Employed

3.37

EV to Sales

9.86

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

-0.79%

ROE (Latest)

1.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

27What is working for the Company

NET SALES(HY)

At CNY 264.8 MM has Grown at 32.72%

PRE-TAX PROFIT(Q)

Highest at CNY 58.65 MM

NET PROFIT(Q)

Highest at CNY 43.19 MM

RAW MATERIAL COST(Y)

Fallen by -7.36% (YoY

EPS(Q)

Highest at CNY 0.1

-12What is not working for the Company

CASH AND EQV(HY)

Lowest at CNY 659.35 MM

DEBT-EQUITY RATIO (HY)

Highest at -4.07 %

INTEREST(Q)

Highest at CNY 1.37 MM

Here's what is working for Guangdong Ganhua Science & Industry Co., Ltd.

Pre-Tax Profit

At CNY 58.65 MM has Grown at 365.38%

over average net sales of the previous four periods of CNY 12.6 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 43.19 MM has Grown at 624.41%

over average net sales of the previous four periods of CNY 5.96 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 58.65 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 43.19 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 264.8 MM has Grown at 32.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

EPS

Highest at CNY 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -7.36% (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 Ganhua Science & Industry Co., Ltd.

Interest

At CNY 1.37 MM has Grown at 81.13%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 1.37 MM

in the last five periods and Increased by 81.13% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 659.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -4.07 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio