Guangdong Shunkong Development 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 Shunkong Development Co., Ltd.

Why is Guangdong Shunkong Development Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 12.83% and Operating profit at -0.66% over the last 5 years

Flat results in Sep 25

INTEREST(HY) At CNY 37.14 MM has Grown at 36.84%
ROCE(HY) Lowest at 9.94%
DEBT-EQUITY RATIO (HY) Highest at 68.17 %

With ROE of 14.76%, it has a very expensive valuation with a 3.01 Price to Book Value

Over the past year, while the stock has generated a return of 4.83%, its profits have risen by 4%

Underperformed the market in the last 1 year

The stock has generated a return of 4.83% in the last 1 year, much lower than market (China Shanghai Composite) returns of 16.67%

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 Other Utilities)

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

Is Guangdong Shunkong Development Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Guangdong Shunkong Development Co., Ltd.

4.83%

0.40

32.92%

China Shanghai Composite

16.67%

1.11

14.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.83%

EBIT Growth (5y)

-0.66%

EBIT to Interest (avg)

11.55

Debt to EBITDA (avg)

0.63

Net Debt to Equity (avg)

0.65

Sales to Capital Employed (avg)

0.39

Tax Ratio

16.38%

Dividend Payout Ratio

48.32%

Pledged Shares

Institutional Holding

ROCE (avg)

16.58%

ROE (avg)

14.61%

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

3.01

EV to EBIT

21.94

EV to EBITDA

12.31

EV to Capital Employed

2.16

EV to Sales

5.06

PEG Ratio

Dividend Yield

ROCE (Latest)

9.84%

ROE (Latest)

14.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 560.8 MM

NET SALES(Q)

Highest at CNY 588.97 MM

PRE-TAX PROFIT(Q)

Highest at CNY 155.4 MM

NET PROFIT(Q)

Highest at CNY 86.5 MM

EPS(Q)

Highest at CNY 0.14

-20What is not working for the Company

INTEREST(HY)

At CNY 37.14 MM has Grown at 36.84%

ROCE(HY)

Lowest at 9.94%

DEBT-EQUITY RATIO (HY)

Highest at 68.17 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2 times

INTEREST COVERAGE RATIO(Q)

Lowest at 826.89

RAW MATERIAL COST(Y)

Grown by 12.64% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 154.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 26.16 %

Here's what is working for Guangdong Shunkong Development Co., Ltd.

Operating Cash Flow

Highest at CNY 560.8 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 588.97 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 155.4 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 86.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Guangdong Shunkong Development Co., Ltd.

Interest

At CNY 37.14 MM has Grown at 36.84%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 826.89

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 68.17 % 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

Debtors Turnover Ratio

Lowest at 2 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY 154.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 26.16 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 12.64% (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