Guangdong Tianan New Material Co., Ltd. (603725) 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 Tianan New Material Co., Ltd.

Why is Guangdong Tianan New Material 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 31.34% and Operating profit at 56.66% 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 8.05% signifying low profitability per unit of shareholders funds

Negative results in Sep 25

INTEREST(HY) At CNY 20.22 MM has Grown at 22.02%
OPERATING CASH FLOW(Y) Lowest at CNY 154.27 MM
OPERATING PROFIT(Q) Lowest at CNY 54.86 MM

With ROE of 16.45%, it has a very expensive valuation with a 3.69 Price to Book Value

Over the past year, while the stock has generated a return of 50.23%, its profits have fallen by -9.1%
At the current price, the company has a high dividend yield of 0.5

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 Specialty Chemicals)

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

Is Guangdong Tianan New Material Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Guangdong Tianan New Material Co., Ltd.

44.4%

0.66

41.22%

China Shanghai Composite

16.78%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.08%

EBIT Growth (5y)

18.24%

EBIT to Interest (avg)

1.60

Debt to EBITDA (avg)

12.04

Net Debt to Equity (avg)

1.01

Sales to Capital Employed (avg)

1.65

Tax Ratio

15.47%

Dividend Payout Ratio

32.40%

Pledged Shares

Institutional Holding

ROCE (avg)

5.27%

ROE (avg)

8.05%

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

1.94

EV to EBIT

17.22

EV to EBITDA

11.52

EV to Capital Employed

1.54

EV to Sales

0.76

PEG Ratio

2.85

Dividend Yield

ROCE (Latest)

8.94%

ROE (Latest)

15.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

OPERATING CASH FLOW(Y)

Highest at CNY 247.69 MM

RAW MATERIAL COST(Y)

Fallen by -2.19% (YoY

CASH AND EQV(HY)

Highest at CNY 982.33 MM

DEBT-EQUITY RATIO (HY)

Lowest at 75.62 %

-4What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.71 times

NET SALES(Q)

Lowest at CNY 524.9 MM

Here's what is working for Guangdong Tianan New Material Co., Ltd.

Operating Cash Flow

Highest at CNY 247.69 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 982.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 75.62 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -2.19% (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 Tianan New Material Co., Ltd.

Net Sales

Lowest at CNY 524.9 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 4.71 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio