Guangxi Nanning Waterworks Co., Ltd. (601368) 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

Guangxi Nanning Waterworks Co., Ltd.

Why is Guangxi Nanning Waterworks Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.56%

Poor long term growth as Net Sales has grown by an annual rate of 10.41% and Operating profit at 2.32% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With ROE of 0.99%, it has a very expensive valuation with a 0.90 Price to Book Value

Over the past year, while the stock has generated a return of 15.55%, its profits have fallen by -55.6%
At the current price, the company has a high dividend yield of 0.6

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 Other Utilities)

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

Is Guangxi Nanning Waterworks Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Guangxi Nanning Waterworks Co., Ltd.

7.85%

1.48

19.58%

China Shanghai Composite

16.01%

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)

10.41%

EBIT Growth (5y)

2.32%

EBIT to Interest (avg)

1.47

Debt to EBITDA (avg)

10.47

Net Debt to Equity (avg)

3.08

Sales to Capital Employed (avg)

0.13

Tax Ratio

14.45%

Dividend Payout Ratio

30.12%

Pledged Shares

Institutional Holding

ROCE (avg)

3.56%

ROE (avg)

3.58%

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

0.90

EV to EBIT

37.68

EV to EBITDA

16.03

EV to Capital Employed

0.98

EV to Sales

8.28

PEG Ratio

Dividend Yield

0.62%

ROCE (Latest)

2.59%

ROE (Latest)

0.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

16What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 59.95 times

RAW MATERIAL COST(Y)

Fallen by -12.55% (YoY

NET SALES(Q)

Highest at CNY 692.8 MM

PRE-TAX PROFIT(Q)

Highest at CNY 127.54 MM

NET PROFIT(Q)

Highest at CNY 108.46 MM

EPS(Q)

Highest at CNY 0.12

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 418.58 MM

DEBT-EQUITY RATIO (HY)

Highest at 322.3 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.83 times

OPERATING PROFIT(Q)

Lowest at CNY 229.4 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 33.11 %

Here's what is working for Guangxi Nanning Waterworks Co., Ltd.

Pre-Tax Profit

At CNY 127.54 MM has Grown at 854.57%

over average net sales of the previous four periods of CNY 13.36 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 108.46 MM has Grown at 822.92%

over average net sales of the previous four periods of CNY 11.75 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 59.95 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at CNY 692.8 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 127.54 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 108.46 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.12

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -12.55% (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 Guangxi Nanning Waterworks Co., Ltd.

Debt-Equity Ratio

Highest at 322.3 % 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

Debtors Turnover Ratio

Lowest at 0.83 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at CNY 418.58 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 229.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 33.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales