Guangdong Xinbao Electrical Appliances Holdings Co., Ltd. (002705) 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 Xinbao Electrical Appliances Holdings Co., Ltd.

Why is Guangdong Xinbao Electrical Appliances Holdings Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.54% and Operating profit at -0.23% over the last 5 years

Flat results in Sep 25

INTEREST(Q) At CNY 23.92 MM has Grown at 36.82%
INTEREST COVERAGE RATIO(Q) Lowest at 1,585.78
DEBTORS TURNOVER RATIO(HY) Lowest at 6.09 times

With ROE of 14.29%, it has a very attractive valuation with a 1.56 Price to Book Value

Over the past year, while the stock has generated a return of -7.92%, its profits have risen by 14.2% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 2.9

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 17.07% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -7.92% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong Xinbao Electrical Appliances Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Guangdong Xinbao Electrical Appliances Holdings Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangdong Xinbao Electrical Appliances Holdings Co., Ltd.

-7.92%

-0.13

30.28%

China Shanghai Composite

16.67%

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)

7.54%

EBIT Growth (5y)

-0.23%

EBIT to Interest (avg)

35.41

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

1.32

Tax Ratio

16.37%

Dividend Payout Ratio

34.88%

Pledged Shares

Institutional Holding

ROCE (avg)

18.34%

ROE (avg)

14.93%

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

1.56

EV to EBIT

10.27

EV to EBITDA

6.62

EV to Capital Employed

1.52

EV to Sales

0.81

PEG Ratio

0.77

Dividend Yield

2.87%

ROCE (Latest)

14.78%

ROE (Latest)

14.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,781.16 MM

RAW MATERIAL COST(Y)

Fallen by 1.5% (YoY

-7What is not working for the Company

INTEREST(Q)

At CNY 23.92 MM has Grown at 36.82%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,585.78

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.09 times

OPERATING PROFIT(Q)

Lowest at CNY 379.38 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.47 %

Here's what is working for Guangdong Xinbao Electrical Appliances Holdings Co., Ltd.

Operating Cash Flow

Highest at CNY 1,781.16 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 1.5% (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 Xinbao Electrical Appliances Holdings Co., Ltd.

Interest

At CNY 23.92 MM has Grown at 36.82%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,585.78

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 379.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.47 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 6.09 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio