Guangdong Tianhe Agricultural Means of Production Co. Ltd. (002999) 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 Tianhe Agricultural Means of Production Co. Ltd.

Why is Guangdong Tianhe Agricultural Means of Production 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 5.07% and Operating profit at -12.51% 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 9.34% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.07% and Operating profit at -12.51% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At CNY 28.89 MM has Grown at 116.57%
NET PROFIT(HY) At CNY 26.67 MM has Grown at -43.95%
ROCE(HY) Lowest at 2.41%

With ROE of 3.46%, it has a fair valuation with a 0.47 Price to Book Value

Over the past year, while the stock has generated a return of 15.83%, its profits have fallen by -15.2%
At the current price, the company has a high dividend yield of 7.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong Tianhe Agricultural Means of Production Co. Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Guangdong Tianhe Agricultural Means of Production Co. Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Tianhe Agricultural Means of Production Co. Ltd.

-100.0%

0.79

34.50%

China Shanghai Composite

15.19%

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)

5.07%

EBIT Growth (5y)

-12.51%

EBIT to Interest (avg)

4.38

Debt to EBITDA (avg)

15.14

Net Debt to Equity (avg)

2.90

Sales to Capital Employed (avg)

2.70

Tax Ratio

29.69%

Dividend Payout Ratio

193.75%

Pledged Shares

Institutional Holding

ROCE (avg)

4.12%

ROE (avg)

9.34%

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

0.47

EV to EBIT

38.72

EV to EBITDA

20.00

EV to Capital Employed

0.86

EV to Sales

0.29

PEG Ratio

Dividend Yield

7.69%

ROCE (Latest)

2.23%

ROE (Latest)

3.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 809.94 MM

PRE-TAX PROFIT(Q)

At CNY 17.92 MM has Grown at 104%

RAW MATERIAL COST(Y)

Fallen by -14.15% (YoY

NET SALES(Q)

At CNY 3,928.77 MM has Grown at 21.57%

NET PROFIT(Q)

Highest at CNY 14.6 MM

EPS(Q)

Highest at CNY 0.04

-22What is not working for the Company

INTEREST(HY)

At CNY 28.89 MM has Grown at 116.57%

NET PROFIT(HY)

At CNY 26.67 MM has Grown at -43.95%

ROCE(HY)

Lowest at 2.41%

INTEREST COVERAGE RATIO(Q)

Lowest at 174.08

Here's what is working for Guangdong Tianhe Agricultural Means of Production Co. Ltd.

Operating Cash Flow

Highest at CNY 809.94 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 17.92 MM has Grown at 104%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 14.6 MM has Grown at 114.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 3,928.77 MM has Grown at 21.57%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 14.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -14.15% (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 Tianhe Agricultural Means of Production Co. Ltd.

Interest

At CNY 19.02 MM has Grown at 92.81%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 174.08

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 19.02 MM

in the last five periods and Increased by 92.81% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)