Why is Guangdong Ganhua Science & Industry Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -3.66% and Operating profit at -162.92% over the last 5 years
2
Positive results in Mar 25
- NET SALES(HY) At CNY 212.65 MM has Grown at 75.19%
- INVENTORY TURNOVER RATIO(HY) Highest at 1.25%
- PRE-TAX PROFIT(Q) At CNY 12.36 MM has Grown at 70.58%
3
With ROE of 1.45%, it has a expensive valuation with a 2.81 Price to Book Value
- Over the past year, while the stock has generated a return of 33.21%, its profits have risen by 2324% ; the PEG ratio of the company is 0
4
Market Beating Performance
- The stock has generated a return of 33.21% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%
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.
25.24%
1.40
49.42%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-3.66%
EBIT Growth (5y)
-162.92%
EBIT to Interest (avg)
17.72
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.21
Sales to Capital Employed (avg)
0.22
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.59%
ROE (avg)
10.83%
Valuation Key Factors 
Factor
Value
P/E Ratio
194
Industry P/E
Price to Book Value
2.81
EV to EBIT
-420.72
EV to EBITDA
262.15
EV to Capital Employed
3.33
EV to Sales
9.75
PEG Ratio
0.02
Dividend Yield
NA
ROCE (Latest)
-0.79%
ROE (Latest)
1.45%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
15What is working for the Company
NET SALES(HY)
At CNY 212.65 MM has Grown at 75.19%
INVENTORY TURNOVER RATIO(HY)
Highest at 1.25%
PRE-TAX PROFIT(Q)
At CNY 12.36 MM has Grown at 70.58%
NET PROFIT(Q)
At CNY 6.66 MM has Grown at 57.73%
-8What is not working for the Company
NET PROFIT(9M)
At CNY -1.95 MM has Grown at -76.62%
INTEREST(HY)
At CNY 1.29 MM has Grown at 12.48%
RAW MATERIAL COST(Y)
Grown by 28.8% (YoY
Here's what is working for Guangdong Ganhua Science & Industry Co., Ltd.
Net Sales
At CNY 212.65 MM has Grown at 75.19%
Year on Year (YoY)MOJO Watch
Sales trend is very positive
Net Sales (CNY MM)
Pre-Tax Profit
At CNY 12.36 MM has Grown at 70.58%
over average net sales of the previous four periods of CNY 7.25 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 6.66 MM has Grown at 57.73%
over average net sales of the previous four periods of CNY 4.22 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 1.25%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Guangdong Ganhua Science & Industry Co., Ltd.
Interest
At CNY 1.29 MM has Grown at 12.48%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Raw Material Cost
Grown by 28.8% (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
Non Operating Income
Highest at CNY 0.4 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






