Guangdong Golden Dragon Development, Inc. (000712) 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 Golden Dragon Development, Inc.

Why is Guangdong Golden Dragon Development, Inc. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -12.53% and Operating profit at -1.83%

The company has declared positive results for the last 8 consecutive quarters

NET PROFIT(HY) At CNY 115.62 MM has Grown at 229.91%
NET SALES(HY) At CNY 626.48 MM has Grown at 20.81%
ROCE(HY) Highest at 14.74%

With ROE of 14.59%, it has a expensive valuation with a 2.83 Price to Book Value

Over the past year, while the stock has generated a return of -35.19%, its profits have risen by 973.2% ; the PEG ratio of the company is 0

Below par performance in long term as well as near term

Along with generating -35.19% 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 Golden Dragon Development, Inc. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

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

Is Guangdong Golden Dragon Development, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangdong Golden Dragon Development, Inc.

-32.52%

0.18

38.61%

China Shanghai Composite

18.87%

1.36

13.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-12.53%

EBIT Growth (5y)

-1.83%

EBIT to Interest (avg)

-558.07

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.35

Tax Ratio

2.80%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.55%

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

2.83

EV to EBIT

-40.08

EV to EBITDA

-61.34

EV to Capital Employed

3.84

EV to Sales

6.01

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

-9.57%

ROE (Latest)

14.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

18What is working for the Company

NET PROFIT(HY)

At CNY 115.62 MM has Grown at 229.91%

NET SALES(HY)

At CNY 626.48 MM has Grown at 20.81%

ROCE(HY)

Highest at 14.74%

RAW MATERIAL COST(Y)

Fallen by -232.52% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 281.09 %

-6What is not working for the Company

NET SALES(Q)

At CNY 221.64 MM has Fallen at -19.59%

NET PROFIT(Q)

At CNY -15.69 MM has Fallen at -122.14%

Here's what is working for Guangdong Golden Dragon Development, Inc.

Debt-Equity Ratio

Lowest at 281.09 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -232.52% (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 Golden Dragon Development, Inc.

Net Sales

At CNY 221.64 MM has Fallen at -19.59%

over average net sales of the previous four periods of CNY 275.62 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Profit

At CNY -15.69 MM has Fallen at -122.14%

over average net sales of the previous four periods of CNY 70.87 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)