Guanglian Aviation Industry Co., Ltd. (300900) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guanglian Aviation Industry Co., Ltd.

Why is Guanglian Aviation Industry Co., Ltd. ?

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 35.32% and Operating profit at -60.48% 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 5.48% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 35.32% and Operating profit at -60.48% over the last 5 years

The company has declared negative results for the last 6 consecutive quarters

NET PROFIT(HY) At CNY -54.45 MM has Grown at -238.99%
INTEREST(HY) At CNY 44.45 MM has Grown at 56.99%
ROCE(HY) Lowest at -2.31%

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 -29.19%, its profits have fallen by -133.8%

Below par performance in long term as well as near term

Along with generating -29.19% 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 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 Aerospace & Defense)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Guanglian Aviation Industry Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guanglian Aviation Industry Co., Ltd.

-15.75%

-0.11

48.15%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

35.32%

EBIT Growth (5y)

-60.48%

EBIT to Interest (avg)

6.83

Debt to EBITDA (avg)

5.22

Net Debt to Equity (avg)

1.70

Sales to Capital Employed (avg)

0.24

Tax Ratio

45.65%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.14%

ROE (avg)

5.48%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.88

EV to EBIT

2432.96

EV to EBITDA

27.42

EV to Capital Employed

1.69

EV to Sales

5.63

PEG Ratio

Dividend Yield

ROCE (Latest)

0.07%

ROE (Latest)

-2.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

11What is working for the Company

NET SALES(HY)

At CNY 641.75 MM has Grown at 55.34%

OPERATING CASH FLOW(Y)

Highest at CNY 135.38 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 1.2%

PRE-TAX PROFIT(Q)

Highest at CNY 46.64 MM

NET PROFIT(Q)

Highest at CNY 45.95 MM

EPS(Q)

Highest at CNY 0.16

-21What is not working for the Company

NET PROFIT(HY)

At CNY -54.45 MM has Grown at -238.99%

INTEREST(HY)

At CNY 44.45 MM has Grown at 56.99%

ROCE(HY)

Lowest at -2.31%

DEBT-EQUITY RATIO (HY)

Highest at 177.06 %

RAW MATERIAL COST(Y)

Grown by 12.55% (YoY

Here's what is working for Guanglian Aviation Industry Co., Ltd.

Net Sales

At CNY 641.75 MM has Grown at 55.34%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 135.38 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 46.64 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 45.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 1.2%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Guanglian Aviation Industry Co., Ltd.

Interest

At CNY 44.45 MM has Grown at 56.99%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 177.06 % 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

Raw Material Cost

Grown by 12.55% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales