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 2.30% and Operating profit at -8.76% 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 2.30% and Operating profit at -8.76% over the last 5 years

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

INTEREST(Q) At CNY 17.16 MM has Grown at 12.75%
DEBTORS TURNOVER RATIO(HY) Lowest at 14.23 times
NET SALES(Q) Lowest at CNY 2,714.18 MM

With ROE of 3.46%, it has a fair valuation with a 1.23 Price to Book Value

Over the past year, while the stock has generated a return of 13.10%, its profits have fallen by -15.2%
At the current price, the company has a high dividend yield of 3

Underperformed the market in the last 1 year

The stock has generated a return of 13.10% in the last 1 year, much lower than market (China Shanghai Composite) returns of 26.42%

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, Medium Return

Absolute

Risk Adjusted

Volatility

Guangdong Tianhe Agricultural Means of Production Co. Ltd.

13.1%

0.84

29.36%

China Shanghai Composite

26.42%

2.04

12.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.30%

EBIT Growth (5y)

-8.76%

EBIT to Interest (avg)

4.38

Debt to EBITDA (avg)

15.14

Net Debt to Equity (avg)

2.90

Sales to Capital Employed (avg)

2.69

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

1.23

EV to EBIT

47.42

EV to EBITDA

24.49

EV to Capital Employed

1.06

EV to Sales

0.35

PEG Ratio

Dividend Yield

2.96%

ROCE (Latest)

2.23%

ROE (Latest)

3.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

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

18What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 16.88 MM has Grown at 229.79%

NET PROFIT(Q)

At CNY 12.05 MM has Grown at 300.72%

OPERATING CASH FLOW(Y)

Highest at CNY 207.31 MM

RAW MATERIAL COST(Y)

Fallen by -81.46% (YoY

-16What is not working for the Company

INTEREST(Q)

At CNY 17.16 MM has Grown at 12.75%

DEBTORS TURNOVER RATIO(HY)

Lowest at 14.23 times

NET SALES(Q)

Lowest at CNY 2,714.18 MM

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

Pre-Tax Profit

At CNY 16.88 MM has Grown at 229.79%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 12.05 MM has Grown at 300.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 207.31 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -81.46% (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 17.16 MM has Grown at 12.75%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 2,714.18 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -12.39%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 14.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio