Guangdong Weide Information Technology Co., Ltd. () 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 Weide Information Technology Co., Ltd.

Why is Guangdong Weide Information Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 10.67%

The company has been able to generate a Return on Capital Employed (avg) of 10.67% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -6.81% and Operating profit at -40.09% over the last 5 years

The company has declared Negative results for the last 12 consecutive quarters

INTEREST(HY) At CNY 0.15 MM has Grown at 378.28%
OPERATING CASH FLOW(Y) Lowest at CNY 0.03 MM
DEBT-EQUITY RATIO (HY) Highest at -54.17 %

With ROE of 1.75%, it has a very expensive valuation with a 2.35 Price to Book Value

Over the past year, while the stock has generated a return of 178.29%, its profits have risen by 13.2% ; the PEG ratio of the company is 10.2
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong Weide Information Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

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

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

Is Guangdong Weide Information Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Weide Information Technology Co., Ltd.

57.66%

4.17

64.90%

China Shanghai Composite

21.68%

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)

-6.81%

EBIT Growth (5y)

-40.09%

EBIT to Interest (avg)

18.81

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.64

Sales to Capital Employed (avg)

0.14

Tax Ratio

5.46%

Dividend Payout Ratio

31.27%

Pledged Shares

Institutional Holding

ROCE (avg)

10.67%

ROE (avg)

3.50%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

323

Industry P/E

Price to Book Value

5.70

EV to EBIT

580.74

EV to EBITDA

411.15

EV to Capital Employed

11.25

EV to Sales

39.78

PEG Ratio

4.30

Dividend Yield

0.03%

ROCE (Latest)

1.94%

ROE (Latest)

1.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

18What is working for the Company

NET SALES(Q)

At CNY 26.99 MM has Grown at 203.25%

PRE-TAX PROFIT(Q)

At CNY 6.44 MM has Grown at 536.47%

RAW MATERIAL COST(Y)

Fallen by -63.34% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 1.02 times

NET PROFIT(Q)

At CNY -0.15 MM has Grown at 84.49%

-13What is not working for the Company

INTEREST(HY)

At CNY 0.18 MM has Grown at 70.5%

OPERATING CASH FLOW(Y)

Lowest at CNY 12.67 MM

DEBT-EQUITY RATIO (HY)

Highest at -44.88 %

Here's what is working for Guangdong Weide Information Technology Co., Ltd.

Net Sales

At CNY 26.99 MM has Grown at 203.25%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 6.44 MM has Grown at 536.47%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -0.15 MM has Grown at 84.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 1.02 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -63.34% (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 Weide Information Technology Co., Ltd.

Interest

At CNY 0.18 MM has Grown at 70.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 12.67 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)

Debt-Equity Ratio

Highest at -44.88 % and Grown

In each half year 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