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

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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 12.61% and Operating profit at 1.62% over the last 5 years

Negative results in Mar 25

INTEREST(HY) At CNY 32.09 MM has Grown at 23.32%
OPERATING CASH FLOW(Y) Lowest at CNY 502.52 MM
DEBT-EQUITY RATIO (HY) Highest at 66.29 %

With ROE of 14.76%, it has a very expensive valuation with a 3.03 Price to Book Value

Over the past year, while the stock has generated a return of -9.75%, its profits have risen by 4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.75% 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 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, Low Return

Absolute

Risk Adjusted

Volatility

Guangdong Shunkong Development Co., Ltd.

1.38%

0.16

29.17%

China Shanghai Composite

15.44%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.61%

EBIT Growth (5y)

1.62%

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

3.03

EV to EBIT

22.09

EV to EBITDA

12.39

EV to Capital Employed

2.17

EV to Sales

5.09

PEG Ratio

Dividend Yield

ROCE (Latest)

9.84%

ROE (Latest)

14.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

5What is working for the Company

NET SALES(9M)

At CNY 1,466.54 MM has Grown at 23.48%

-25What is not working for the Company

INTEREST(HY)

At CNY 32.09 MM has Grown at 23.32%

OPERATING CASH FLOW(Y)

Lowest at CNY 502.52 MM

DEBT-EQUITY RATIO (HY)

Highest at 66.29 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.24%

INTEREST COVERAGE RATIO(Q)

Lowest at 542.23

RAW MATERIAL COST(Y)

Grown by 11.51% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 95.93 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.51 %

PRE-TAX PROFIT(Q)

Lowest at CNY 93.8 MM

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

Net Sales

At CNY 990.14 MM has Grown at 27.32%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

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

Operating Cash Flow

Lowest at CNY 502.52 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

At CNY 17.69 MM has Grown at 22.85%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 542.23

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 66.29 % 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 2.24% 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

Interest

Highest at CNY 17.69 MM

in the last five periods and Increased by 22.85% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 95.93 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 19.51 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 93.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 11.51% (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