Guangdong Hongtu Technology (Holdings) Co., Ltd. (002101) 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 Hongtu Technology (Holdings) Co., Ltd.

Why is Guangdong Hongtu Technology (Holdings) Co., Ltd. ?

Negative results in Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 722.92
OPERATING CASH FLOW(Y) Lowest at CNY 388.65 MM
NET PROFIT(9M) At CNY 209.95 MM has Grown at -21.38%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -18.71% 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 Auto Components & Equipments)

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

Is Guangdong Hongtu Technology (Holdings) Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangdong Hongtu Technology (Holdings) Co., Ltd.

-18.71%

-0.02

32.41%

China Shanghai Composite

17.07%

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)

10.85%

EBIT Growth (5y)

180.36%

EBIT to Interest (avg)

10.00

Debt to EBITDA (avg)

0.54

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

0.83

Tax Ratio

4.28%

Dividend Payout Ratio

49.92%

Pledged Shares

Institutional Holding

ROCE (avg)

6.16%

ROE (avg)

6.92%

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

1.19

EV to EBIT

31.73

EV to EBITDA

8.56

EV to Capital Employed

1.17

EV to Sales

1.19

PEG Ratio

Dividend Yield

1.80%

ROCE (Latest)

3.69%

ROE (Latest)

4.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly 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

3What is working for the Company

NET SALES(9M)

At CNY 6,652.78 MM has Grown at 18.71%

INVENTORY TURNOVER RATIO(HY)

Highest at 5.59 times

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 722.92

OPERATING CASH FLOW(Y)

Lowest at CNY 388.65 MM

NET PROFIT(9M)

At CNY 209.95 MM has Grown at -21.38%

INTEREST(HY)

At CNY 25.42 MM has Grown at 8.57%

ROCE(HY)

Lowest at 4.63%

DEBT-EQUITY RATIO (HY)

Highest at 12.44 %

RAW MATERIAL COST(Y)

Grown by 8.23% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 90.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.78 %

Here's what is working for Guangdong Hongtu Technology (Holdings) Co., Ltd.

Net Sales

At CNY 6,652.78 MM has Grown at 18.71%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 5.59 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 Hongtu Technology (Holdings) Co., Ltd.

Interest Coverage Ratio

Lowest at 722.92 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 25.42 MM has Grown at 8.57%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 12.44 % 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

Net Profit

At CNY 209.95 MM has Grown at -21.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 388.65 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 90.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 8.23% (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