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

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. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 5.14% and Operating profit at -2.13% over the last 5 years
The company is Net-Debt Free
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 5.14% and Operating profit at -2.13% over the last 5 years

INTEREST(Q) At CNY 16.53 MM has Grown at 13.67%
INTEREST COVERAGE RATIO(Q) Lowest at 193.96
DEBT-EQUITY RATIO (HY) Highest at 367.73 %

With ROE of 6.15%, it has a expensive valuation with a 0.42 Price to Book Value

Over the past year, while the stock has generated a return of -19.21%, its profits have risen by 110.2% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 13

Below par performance in long term as well as near term

Along with generating -19.21% 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 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 Trading & Distributors)

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

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

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangdong Tianhe Agricultural Means of Production Co. Ltd.

-21.74%

-0.17

30.53%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.14%

EBIT Growth (5y)

-2.13%

EBIT to Interest (avg)

4.38

Debt to EBITDA (avg)

15.14

Net Debt to Equity (avg)

2.90

Sales to Capital Employed (avg)

2.55

Tax Ratio

29.69%

Dividend Payout Ratio

40.67%

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

0.42

EV to EBIT

31.40

EV to EBITDA

21.42

EV to Capital Employed

0.87

EV to Sales

0.36

PEG Ratio

0.06

Dividend Yield

12.97%

ROCE (Latest)

2.78%

ROE (Latest)

6.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -10.57% (YoY

NET PROFIT(9M)

Higher at CNY 44.6 MM

NET SALES(Q)

Highest at CNY 3,957.47 MM

-19What is not working for the Company

INTEREST(Q)

At CNY 16.53 MM has Grown at 13.67%

INTEREST COVERAGE RATIO(Q)

Lowest at 193.96

DEBT-EQUITY RATIO (HY)

Highest at 367.73 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.82 times

OPERATING PROFIT(Q)

Lowest at CNY 32.06 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.81 %

NET PROFIT(Q)

Lowest at CNY 8.48 MM

EPS(Q)

Lowest at CNY 0.02

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

Net Sales

Highest at CNY 3,957.47 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -10.57% (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 16.53 MM has Grown at 13.67%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 193.96

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 8.48 MM has Fallen at -41.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 32.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.81 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 8.48 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 367.73 %

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

Inventory Turnover Ratio

Lowest at 3.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio