Guangdong Guanghong Holdings Co., Ltd. (000529) 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 Guanghong Holdings Co., Ltd.

Why is Guangdong Guanghong Holdings Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -8.49% and Operating profit at -172.25% over the last 5 years

With a fall in Net Sales of -17.66%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 10 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY 156.96 MM
ROCE(HY) Lowest at 3.29%
DEBT-EQUITY RATIO (HY) Highest at 8.83 %

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.43% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Retailing)

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

Is Guangdong Guanghong Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangdong Guanghong Holdings Co., Ltd.

-100.0%

-0.63

24.60%

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)

-8.49%

EBIT Growth (5y)

-172.25%

EBIT to Interest (avg)

14.45

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.47

Tax Ratio

14.21%

Dividend Payout Ratio

57.53%

Pledged Shares

Institutional Holding

ROCE (avg)

331.34%

ROE (avg)

14.83%

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

1.10

EV to EBIT

-72.56

EV to EBITDA

65.62

EV to Capital Employed

1.09

EV to Sales

1.61

PEG Ratio

Dividend Yield

2.01%

ROCE (Latest)

-1.51%

ROE (Latest)

4.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 6.71 times

-27What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 156.96 MM

ROCE(HY)

Lowest at 3.29%

DEBT-EQUITY RATIO (HY)

Highest at 8.83 %

NET SALES(Q)

At CNY 541.95 MM has Fallen at -17.66%

RAW MATERIAL COST(Y)

Grown by 11.78% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 21.98 times

OPERATING PROFIT(Q)

Lowest at CNY -22.97 MM

PRE-TAX PROFIT(Q)

Lowest at CNY -7.25 MM

NET PROFIT(Q)

Lowest at CNY -8.62 MM

EPS(Q)

Lowest at CNY -0.01

Here's what is working for Guangdong Guanghong Holdings Co., Ltd.

Inventory Turnover Ratio

Highest at 6.71 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 Guanghong Holdings Co., Ltd.

Pre-Tax Profit

At CNY -7.25 MM has Fallen at -148.87%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -8.62 MM has Fallen at -174.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 541.95 MM has Fallen at -17.66%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 8.83 % and Grown

In each half year 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

Operating Cash Flow

Lowest at CNY 156.96 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 -22.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY -7.25 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -8.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 21.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 11.78% (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