Guangxi Wuzhou Zhongheng Group Co., Ltd. (600252) 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

Guangxi Wuzhou Zhongheng Group Co., Ltd.

Why is Guangxi Wuzhou Zhongheng Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.12%

The company has been able to generate a Return on Capital Employed (avg) of 0.12% 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 -9.29% and Operating profit at -194.28% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET SALES(HY) At CNY 1,065.06 MM has Grown at -37.63%
NET PROFIT(HY) At CNY -257.44 MM has Grown at -1,626.38%
ROCE(HY) Lowest at -6.57%

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 9.16%, its profits have fallen by -401.5%
At the current price, the company has a high dividend yield of 0

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 Pharmaceuticals & Biotechnology)

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

Is Guangxi Wuzhou Zhongheng Group Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangxi Wuzhou Zhongheng Group Co., Ltd.

-100.0%

1.00

30.20%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-9.29%

EBIT Growth (5y)

-194.28%

EBIT to Interest (avg)

-2.79

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

0.33

Tax Ratio

7.46%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.12%

ROE (avg)

1.96%

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

1.57

EV to EBIT

-16.20

EV to EBITDA

-24.64

EV to Capital Employed

1.86

EV to Sales

3.22

PEG Ratio

Dividend Yield

ROCE (Latest)

-11.45%

ROE (Latest)

-7.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 484.71 MM

NET SALES(Q)

At CNY 734.52 MM has Grown at 32.02%

PRE-TAX PROFIT(Q)

At CNY 28.54 MM has Grown at 137.86%

NET PROFIT(Q)

At CNY 26.23 MM has Grown at 154.6%

-22What is not working for the Company

NET SALES(HY)

At CNY 1,065.06 MM has Grown at -37.63%

NET PROFIT(HY)

At CNY -257.44 MM has Grown at -1,626.38%

ROCE(HY)

Lowest at -6.57%

INTEREST(Q)

At CNY 15.42 MM has Grown at 13.41%

RAW MATERIAL COST(Y)

Grown by 19.08% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.34%

Here's what is working for Guangxi Wuzhou Zhongheng Group Co., Ltd.

Operating Cash Flow

Highest at CNY 484.71 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 734.52 MM has Grown at 32.02%

over average net sales of the previous four periods of CNY 556.38 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 28.54 MM has Grown at 137.86%

over average net sales of the previous four periods of CNY -75.38 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 26.23 MM has Grown at 154.6%

over average net sales of the previous four periods of CNY -48.05 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Here's what is not working for Guangxi Wuzhou Zhongheng Group Co., Ltd.

Interest

At CNY 15.42 MM has Grown at 13.41%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 1.34%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 19.08% (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