Guangdong Vanward New Electric Co., Ltd. (002543) 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 Vanward New Electric Co., Ltd.

Why is Guangdong Vanward New Electric Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.12% and Operating profit at 4.95% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 291.73 MM
NET SALES(Q) At CNY 1,440.83 MM has Fallen at -24.23%
OPERATING PROFIT(Q) Lowest at CNY 86.85 MM

With ROE of 14.47%, it has a very attractive valuation with a 2.04 Price to Book Value

Over the past year, while the stock has generated a return of -22.20%, its profits have risen by 3.3% ; the PEG ratio of the company is 4.2
At the current price, the company has a high dividend yield of 3.4

Below par performance in long term as well as near term

Along with generating -22.20% 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 Vanward New Electric Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Guangdong Vanward New Electric Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangdong Vanward New Electric Co., Ltd.

-22.2%

-0.49

33.09%

China Shanghai Composite

17.07%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.12%

EBIT Growth (5y)

4.95%

EBIT to Interest (avg)

30.47

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

1.06

Tax Ratio

13.60%

Dividend Payout Ratio

49.27%

Pledged Shares

Institutional Holding

ROCE (avg)

15.80%

ROE (avg)

12.64%

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

2.04

EV to EBIT

13.44

EV to EBITDA

11.07

EV to Capital Employed

2.22

EV to Sales

1.23

PEG Ratio

4.22

Dividend Yield

3.39%

ROCE (Latest)

16.54%

ROE (Latest)

14.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

7What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

ROCE(HY)

Highest at 13.99%

RAW MATERIAL COST(Y)

Fallen by -11.28% (YoY

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 291.73 MM

NET SALES(Q)

At CNY 1,440.83 MM has Fallen at -24.23%

OPERATING PROFIT(Q)

Lowest at CNY 86.85 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.03 %

PRE-TAX PROFIT(Q)

Lowest at CNY 107.56 MM

NET PROFIT(Q)

Lowest at CNY 83.7 MM

Here's what is working for Guangdong Vanward New Electric Co., Ltd.

Raw Material Cost

Fallen by -11.28% (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 Vanward New Electric Co., Ltd.

Net Sales

At CNY 1,440.83 MM has Fallen at -24.23%

over average net sales of the previous four periods of CNY 1,901.55 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 291.73 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 107.56 MM has Fallen at -47.56%

over average net sales of the previous four periods of CNY 205.12 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 83.7 MM has Fallen at -53.3%

over average net sales of the previous four periods of CNY 179.24 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 86.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.03 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 107.56 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 83.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)