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 1.76% and Operating profit at -31.49% over the last 5 years

Negative results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY -41.55 MM
PRE-TAX PROFIT(Q) At CNY 5.39 MM has Fallen at -76.32%
NET PROFIT(Q) At CNY 1.24 MM has Fallen at -89.8%

Below par performance in long term as well as near term

Along with generating -32.09% 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 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 Paper, Forest & Jute Products)

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

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

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangdong Ganhua Science & Industry Co., Ltd.

-32.09%

0.12

39.47%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.76%

EBIT Growth (5y)

-31.49%

EBIT to Interest (avg)

17.72

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.24

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

Industry P/E

Price to Book Value

1.84

EV to EBIT

190.57

EV to EBITDA

80.28

EV to Capital Employed

1.88

EV to Sales

5.14

PEG Ratio

0.14

Dividend Yield

ROCE (Latest)

0.99%

ROE (Latest)

2.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

16What is working for the Company

NET PROFIT(9M)

At CNY 17.45 MM has Grown at 992.72%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.3 times

NET SALES(Q)

Highest at CNY 169.52 MM

-28What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -41.55 MM

PRE-TAX PROFIT(Q)

At CNY 5.39 MM has Fallen at -76.32%

NET PROFIT(Q)

At CNY 1.24 MM has Fallen at -89.8%

INTEREST(Q)

At CNY 1.32 MM has Grown at 307.86%

RAW MATERIAL COST(Y)

Grown by 18.79% (YoY

CASH AND EQV(HY)

Lowest at CNY 534.42 MM

DEBT-EQUITY RATIO (HY)

Highest at -0.95 %

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

Net Sales

At CNY 169.52 MM has Grown at 34.15%

over average net sales of the previous four periods of CNY 126.37 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 169.52 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 1.3 times

in the last five Semi-Annual periods

MOJO 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.

Pre-Tax Profit

At CNY 5.39 MM has Fallen at -76.32%

over average net sales of the previous four periods of CNY 22.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1.24 MM has Fallen at -89.8%

over average net sales of the previous four periods of CNY 12.17 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -41.55 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 1.32 MM has Grown at 307.86%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 534.42 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -0.95 %

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

Raw Material Cost

Grown by 18.79% (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