ScoreWhy is Guangdong Zhongnan Iron & Steel Co., Ltd. ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of -1.45% and Operating profit at -182.04% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 6.76% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -1.45% and Operating profit at -182.04% over the last 5 years
3
The company has declared Negative results for the last 5 consecutive quarters
- NET PROFIT(HY) At CNY -495.52 MM has Grown at -218.75%
- INTEREST(HY) At CNY 48.81 MM has Grown at 10.26%
- DEBT-EQUITY RATIO (HY) Highest at 74.46 %
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -8.79%, its profits have fallen by -84.7%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -8.79% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Guangdong Zhongnan Iron & Steel Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Ferrous Metals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Guangdong Zhongnan Iron & Steel Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Guangdong Zhongnan Iron & Steel Co., Ltd.
-9.82%
0.96
45.48%
China Shanghai Composite
14.77%
1.01
15.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-1.45%
EBIT Growth (5y)
-182.04%
EBIT to Interest (avg)
4.15
Debt to EBITDA (avg)
3.45
Net Debt to Equity (avg)
0.71
Sales to Capital Employed (avg)
2.44
Tax Ratio
6.44%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.90%
ROE (avg)
6.76%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.83
EV to EBIT
-15.61
EV to EBITDA
17.39
EV to Capital Employed
0.89
EV to Sales
0.40
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-5.70%
ROE (Latest)
-9.49%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -67.25% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 94.34%
PRE-TAX PROFIT(Q)
Highest at CNY -131.82 MM
NET PROFIT(Q)
Highest at CNY -131.85 MM
EPS(Q)
Highest at CNY -0.05
-31What is not working for the Company
NET PROFIT(HY)
At CNY -495.52 MM has Grown at -218.75%
INTEREST(HY)
At CNY 48.81 MM has Grown at 10.26%
DEBT-EQUITY RATIO
(HY)
Highest at 74.46 %
NET SALES(Q)
Lowest at CNY 5,654.97 MM
OPERATING PROFIT(Q)
Lowest at CNY -181.61 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -3.21 %
Here's what is working for Guangdong Zhongnan Iron & Steel Co., Ltd.
Pre-Tax Profit
Highest at CNY -131.82 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
At CNY -131.82 MM has Grown at 62.74%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY -131.85 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Net Profit
At CNY -131.85 MM has Grown at 57.58%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY -0.05
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Debtors Turnover Ratio
Highest at 94.34%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -67.25% (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 Zhongnan Iron & Steel Co., Ltd.
Net Sales
At CNY 5,654.97 MM has Fallen at -29.6%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Interest
At CNY 48.81 MM has Grown at 10.26%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debt-Equity Ratio
Highest at 74.46 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Net Sales
Lowest at CNY 5,654.97 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY -181.61 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at -3.21 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
