Guangdong Jingyi Metal Co., Ltd. (002295) 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 Jingyi Metal Co., Ltd.

Why is Guangdong Jingyi Metal Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.74%

The company has been able to generate a Return on Capital Employed (avg) of 3.74% 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 -1.83% and Operating profit at -12.77% 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 3.06% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.83% and Operating profit at -12.77% over the last 5 years

The company has declared Negative results for the last 14 consecutive quarters

INTEREST(HY) At CNY 11.24 MM has Grown at 8.46%
ROCE(HY) Lowest at 0.9%
INTEREST COVERAGE RATIO(Q) Lowest at 91.12

With ROE of 1.47%, it has a expensive valuation with a 2.75 Price to Book Value

Over the past year, while the stock has generated a return of 36.15%, its profits have risen by 8.1% ; the PEG ratio of the company is 23.1
At the current price, the company has a high dividend yield of 0.2

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 Minerals & Mining)

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

Is Guangdong Jingyi Metal Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Jingyi Metal Co., Ltd.

36.15%

1.71

53.66%

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)

-1.83%

EBIT Growth (5y)

-12.77%

EBIT to Interest (avg)

3.11

Debt to EBITDA (avg)

4.50

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

1.93

Tax Ratio

16.55%

Dividend Payout Ratio

32.55%

Pledged Shares

Institutional Holding

ROCE (avg)

3.74%

ROE (avg)

3.06%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

188

Industry P/E

Price to Book Value

2.75

EV to EBIT

88.35

EV to EBITDA

48.97

EV to Capital Employed

2.32

EV to Sales

0.94

PEG Ratio

23.10

Dividend Yield

0.24%

ROCE (Latest)

2.63%

ROE (Latest)

1.47%

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

Mildly 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

6What is working for the Company

NET SALES(HY)

At CNY 2,402.41 MM has Grown at 26.72%

INVENTORY TURNOVER RATIO(HY)

Highest at 18.15 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.56 times

-23What is not working for the Company

INTEREST(HY)

At CNY 11.24 MM has Grown at 8.46%

ROCE(HY)

Lowest at 0.9%

INTEREST COVERAGE RATIO(Q)

Lowest at 91.12

PRE-TAX PROFIT(Q)

At CNY 3.02 MM has Fallen at -45.44%

RAW MATERIAL COST(Y)

Grown by 30.41% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 5.08 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.46 %

NET PROFIT(Q)

At CNY 3.23 MM has Fallen at -33.79%

Here's what is working for Guangdong Jingyi Metal Co., Ltd.

Net Sales

At CNY 2,402.41 MM has Grown at 26.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 18.15 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.56 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Guangdong Jingyi Metal Co., Ltd.

Interest Coverage Ratio

Lowest at 91.12

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 3.02 MM has Fallen at -45.44%

over average net sales of the previous four periods of CNY 5.53 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

At CNY 11.24 MM has Grown at 8.46%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 5.08 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 3.23 MM has Fallen at -33.79%

over average net sales of the previous four periods of CNY 4.88 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 30.41% (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