Guangdong Tapai Group Co., Ltd. (002233) 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 Tapai Group Co., Ltd.

Why is Guangdong Tapai Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -11.87% and Operating profit at -26.87% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At CNY 0.65 MM has Grown at 41.44%
DEBTORS TURNOVER RATIO(HY) Lowest at 35.8 times
INTEREST COVERAGE RATIO(Q) Lowest at 37,119.51

With ROE of 4.89%, it has a attractive valuation with a 0.77 Price to Book Value

Over the past year, while the stock has generated a return of -2.72%, its profits have risen by 40% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 6.1

Below par performance in long term as well as near term

Along with generating -2.72% returns in the last 1 year, the stock has also underperformed 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 Tapai Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is Guangdong Tapai Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangdong Tapai Group Co., Ltd.

-2.72%

0.16

30.84%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-11.87%

EBIT Growth (5y)

-26.87%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.38

Tax Ratio

23.73%

Dividend Payout Ratio

88.71%

Pledged Shares

Institutional Holding

ROCE (avg)

15.09%

ROE (avg)

8.88%

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

0.77

EV to EBIT

9.99

EV to EBITDA

5.01

EV to Capital Employed

0.61

EV to Sales

1.07

PEG Ratio

0.40

Dividend Yield

6.06%

ROCE (Latest)

6.09%

ROE (Latest)

4.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -67.62% (YoY

CASH AND EQV(HY)

Highest at CNY 11,149.93 MM

PRE-TAX PROFIT(Q)

At CNY 174.82 MM has Grown at 54.86%

-22What is not working for the Company

INTEREST(HY)

At CNY 0.65 MM has Grown at 41.44%

DEBTORS TURNOVER RATIO(HY)

Lowest at 35.8 times

INTEREST COVERAGE RATIO(Q)

Lowest at 37,119.51

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.91 times

NET SALES(Q)

Lowest at CNY 830.4 MM

OPERATING PROFIT(Q)

Lowest at CNY 104.22 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.55 %

Here's what is working for Guangdong Tapai Group Co., Ltd.

Pre-Tax Profit

At CNY 174.82 MM has Grown at 54.86%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 11,149.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -67.62% (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 Tapai Group Co., Ltd.

Interest

At CNY 0.65 MM has Grown at 41.44%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 37,119.51

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 35.8 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

Net Sales

Lowest at CNY 830.4 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 104.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.55 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 4.91 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio