Why is Guangdong Shenglu Telecommunication Tech Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 1.69%
- The company has been able to generate a Return on Capital Employed (avg) of 1.69% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -0.63% and Operating profit at -218.79% over the last 5 years
3
The company has declared Negative results for the last 7 consecutive quarters
- NET PROFIT(HY) At CNY -791.47 MM has Grown at -880.71%
- ROCE(HY) Lowest at -26.47%
- INTEREST(Q) At CNY 1 MM has Grown at 52.53%
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 22.18%, its profits have fallen by -1406.1%
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 IT - Hardware)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Guangdong Shenglu Telecommunication Tech Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Guangdong Shenglu Telecommunication Tech Co., Ltd.
-100.0%
1.41
40.75%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-0.63%
EBIT Growth (5y)
-218.79%
EBIT to Interest (avg)
-20.72
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.10
Sales to Capital Employed (avg)
0.33
Tax Ratio
1.57%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.69%
ROE (avg)
2.99%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
2.79
EV to EBIT
-8.72
EV to EBITDA
-9.46
EV to Capital Employed
3.00
EV to Sales
6.03
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-34.39%
ROE (Latest)
-29.49%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 191.72 MM
PRE-TAX PROFIT(Q)
At CNY 28.62 MM has Grown at 115.09%
NET PROFIT(Q)
At CNY 24.74 MM has Grown at 113.2%
-16What is not working for the Company
NET PROFIT(HY)
At CNY -791.47 MM has Grown at -880.71%
ROCE(HY)
Lowest at -26.47%
INTEREST(Q)
At CNY 1 MM has Grown at 52.53%
RAW MATERIAL COST(Y)
Grown by 9.58% (YoY
Here's what is working for Guangdong Shenglu Telecommunication Tech Co., Ltd.
Operating Cash Flow
Highest at CNY 191.72 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Pre-Tax Profit
At CNY 28.62 MM has Grown at 115.09%
over average net sales of the previous four periods of CNY -189.65 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 24.74 MM has Grown at 113.2%
over average net sales of the previous four periods of CNY -187.47 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Here's what is not working for Guangdong Shenglu Telecommunication Tech Co., Ltd.
Interest
At CNY 1 MM has Grown at 52.53%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Raw Material Cost
Grown by 9.58% (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






