GuangDong Leary New Material Technology Co., Ltd. () 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 Leary New Material Technology Co., Ltd.

Why is GuangDong Leary New Material Technology Co., Ltd. ?

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 20.62% and Operating profit at -8.75% 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 6.21% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 20.62% and Operating profit at -8.75% over the last 5 years

Positive results in Dec 24

NET PROFIT(HY) At CNY 19.46 MM has Grown at 53.18%
RAW MATERIAL COST(Y) Fallen by 1.5% (YoY)
NET SALES(Q) Highest at CNY 158.78 MM

With ROE of 3.91%, it has a very expensive valuation with a 2.25 Price to Book Value

Over the past year, while the stock has generated a return of 93.88%, its profits have risen by 38.8% ; the PEG ratio of the company is 1.5

Market Beating performance in long term as well as near term

Along with generating 93.88% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GuangDong Leary New Material Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Packaging should be less than 30%

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

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

Is GuangDong Leary New Material Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

GuangDong Leary New Material Technology Co., Ltd.

93.88%

3.12

44.63%

China Shanghai Composite

24.27%

1.73

14.05%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.62%

EBIT Growth (5y)

-8.75%

EBIT to Interest (avg)

36.92

Debt to EBITDA (avg)

0.25

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.46

Tax Ratio

6.14%

Dividend Payout Ratio

27.15%

Pledged Shares

Institutional Holding

ROCE (avg)

8.12%

ROE (avg)

6.21%

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

2.25

EV to EBIT

80.57

EV to EBITDA

40.06

EV to Capital Employed

2.14

EV to Sales

3.51

PEG Ratio

1.48

Dividend Yield

ROCE (Latest)

2.66%

ROE (Latest)

3.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

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

Not enough Data to analyse Financial Trend

Here's what is working for GuangDong Leary New Material Technology Co., Ltd.

Net Sales

At CNY 158.78 MM has Grown at 33.82%

over average net sales of the previous four periods of CNY 118.65 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 19.46 MM has Grown at 53.18%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 158.78 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by 1.5% (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 Leary New Material Technology Co., Ltd.

Interest

At CNY 0.66 MM has Grown at 36.19%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 40.42 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 Coverage Ratio

Lowest at 1,829.2

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 6.56 % 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

Operating Profit

Lowest at CNY 10.88 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.85 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Dividend Payout Ratio

Lowest at 104.1%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)