Guangdong Guanghua Sci-Tech Co., Ltd. (002741) 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 Guanghua Sci-Tech Co., Ltd.

Why is Guangdong Guanghua Sci-Tech Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.51%

The company has been able to generate a Return on Capital Employed (avg) of 1.51% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 8.37% and Operating profit at -222.27% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 1.98% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.37% and Operating profit at -222.27% over the last 5 years

With a growth in Net Sales of 10.43%, the company declared Outstanding results in Sep 25

ROCE(HY) Highest at -7.41%
RAW MATERIAL COST(Y) Fallen by -45.57% (YoY)
CASH AND EQV(HY) Highest at CNY 1,481.01 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 10.01%, its profits have risen by 21.8%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong Guanghua Sci-Tech Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Guangdong Guanghua Sci-Tech Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Guanghua Sci-Tech Co., Ltd.

10.01%

1.92

46.20%

China Shanghai Composite

16.67%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.37%

EBIT Growth (5y)

-222.27%

EBIT to Interest (avg)

-2.04

Debt to EBITDA (avg)

4.83

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.92

Tax Ratio

4.44%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.51%

ROE (avg)

1.98%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

5.32

EV to EBIT

-102.09

EV to EBITDA

312.10

EV to Capital Employed

4.39

EV to Sales

3.93

PEG Ratio

Dividend Yield

ROCE (Latest)

-4.30%

ROE (Latest)

-8.44%

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

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

24What is working for the Company

ROCE(HY)

Highest at -7.41%

RAW MATERIAL COST(Y)

Fallen by -45.57% (YoY

CASH AND EQV(HY)

Highest at CNY 1,481.01 MM

DEBT-EQUITY RATIO (HY)

Lowest at 22.32 %

NET SALES(Q)

Highest at CNY 762.33 MM

PRE-TAX PROFIT(Q)

Highest at CNY 32.92 MM

NET PROFIT(Q)

Highest at CNY 33.26 MM

EPS(Q)

Highest at CNY 0.07

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Guangdong Guanghua Sci-Tech Co., Ltd.

Pre-Tax Profit

At CNY 32.92 MM has Grown at 189.27%

over average net sales of the previous four periods of CNY -36.88 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 33.26 MM has Grown at 183.45%

over average net sales of the previous four periods of CNY -39.86 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 762.33 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 32.92 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 33.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.07

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 1,481.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 22.32 %

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 -45.57% (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