Guangdong Hongda Holdings Group Co., Ltd. (002683) 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 Hongda Holdings Group Co., Ltd.

Why is Guangdong Hongda Holdings Group Co., Ltd. ?

Flat results in Mar 26

INTEREST(HY) At CNY 103.29 MM has Grown at 31.62%
DEBT-EQUITY RATIO (HY) Highest at 117.4 %
INVENTORY TURNOVER RATIO(HY) Lowest at 14.56 times

With ROE of 24.07%, it has a expensive valuation with a 2.89 Price to Book Value

Over the past year, while the stock has generated a return of -16.99%, its profits have risen by 35.6% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 2.4

Below par performance in long term as well as near term

Along with generating -16.99% 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 Construction)

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

Is Guangdong Hongda Holdings Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Hongda Holdings Group Co., Ltd.

-18.86%

0.69

47.41%

China Shanghai Composite

16.78%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.78%

EBIT Growth (5y)

26.70%

EBIT to Interest (avg)

7.93

Debt to EBITDA (avg)

1.24

Net Debt to Equity (avg)

0.65

Sales to Capital Employed (avg)

1.09

Tax Ratio

14.53%

Dividend Payout Ratio

50.69%

Pledged Shares

Institutional Holding

ROCE (avg)

12.35%

ROE (avg)

14.08%

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

2.89

EV to EBIT

13.66

EV to EBITDA

9.61

EV to Capital Employed

1.88

EV to Sales

1.35

PEG Ratio

0.36

Dividend Yield

2.40%

ROCE (Latest)

13.73%

ROE (Latest)

24.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly 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

8What is working for the Company

NET SALES(HY)

At CNY 10,159.74 MM has Grown at 26.46%

ROCE(HY)

Highest at 14.19%

RAW MATERIAL COST(Y)

Fallen by -14.78% (YoY

CASH AND EQV(HY)

Highest at CNY 8,589.87 MM

-17What is not working for the Company

INTEREST(HY)

At CNY 103.29 MM has Grown at 31.62%

DEBT-EQUITY RATIO (HY)

Highest at 117.4 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 14.56 times

INTEREST COVERAGE RATIO(Q)

Lowest at 571.19

OPERATING PROFIT(Q)

Lowest at CNY 284.57 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.55 %

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

Net Sales

At CNY 10,159.74 MM has Grown at 26.46%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 8,589.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -14.78% (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 Hongda Holdings Group Co., Ltd.

Interest

At CNY 103.29 MM has Grown at 31.62%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 571.19

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 117.4 % 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

Inventory Turnover Ratio

Lowest at 14.56 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at CNY 284.57 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.55 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales