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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 8.32% and Operating profit at 12.24% over the last 5 years
The company is Net-Debt Free
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 8.32% and Operating profit at 12.24% over the last 5 years

The company has declared Positive results for the last 5 consecutive quarters

ROCE(HY) Highest at 6.24%
NET SALES(Q) Highest at CNY 969.66 MM
RAW MATERIAL COST(Y) Fallen by -57.29% (YoY)

With ROE of 6.07%, it has a fair valuation with a 6.57 Price to Book Value

Over the past year, while the stock has generated a return of 86.68%, its profits have risen by 165.6% ; the PEG ratio of the company is 0.7

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.

86.68%

5.32

55.01%

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)

8.32%

EBIT Growth (5y)

12.24%

EBIT to Interest (avg)

-2.04

Debt to EBITDA (avg)

4.83

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.91

Tax Ratio

4.44%

Dividend Payout Ratio

44.76%

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

108

Industry P/E

Price to Book Value

6.57

EV to EBIT

98.94

EV to EBITDA

61.06

EV to Capital Employed

4.96

EV to Sales

4.13

PEG Ratio

0.65

Dividend Yield

0.31%

ROCE (Latest)

5.02%

ROE (Latest)

6.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

25What is working for the Company

ROCE(HY)

Highest at 6.24%

NET SALES(Q)

Highest at CNY 969.66 MM

RAW MATERIAL COST(Y)

Fallen by -57.29% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 45.54 MM

NET PROFIT(Q)

Highest at CNY 41.15 MM

EPS(Q)

Highest at CNY 0.09

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -125.94 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 728.46

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.18 times

INTEREST(Q)

Highest at CNY 6.1 MM

OPERATING PROFIT(Q)

Lowest at CNY 44.41 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.58 %

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

Net Sales

Highest at CNY 969.66 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

At CNY 969.66 MM has Grown at 31%

over average net sales of the previous four periods of CNY 740.17 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 45.54 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 45.54 MM has Grown at 55.79%

over average net sales of the previous four periods of CNY 29.23 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 41.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 41.15 MM has Grown at 58.69%

over average net sales of the previous four periods of CNY 25.93 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.09

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -57.29% (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 Guanghua Sci-Tech Co., Ltd.

Operating Cash Flow

Lowest at CNY -125.94 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 6.1 MM has Grown at 33.47%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 728.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 6.1 MM

in the last five periods and Increased by 33.47% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 44.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.58 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 3.18 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio