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

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 -10.49% and Operating profit at -197.76% over the last 5 years

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

NET PROFIT(HY) At CNY 4.38 MM has Grown at -88.17%
OPERATING CASH FLOW(Y) Lowest at CNY 0.62 MM
INTEREST(HY) At CNY 32.55 MM has Grown at 6.85%

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 5.86%, its profits have fallen by -401.5%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 5.86% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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, Low Return

Absolute

Risk Adjusted

Volatility

Guangxi Wuzhou Zhongheng Group Co., Ltd.

-29.76%

0.36

28.87%

China Shanghai Composite

16.78%

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)

-13.48%

EBIT Growth (5y)

-246.28%

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)

0.31

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

1.44

EV to EBIT

-10.43

EV to EBITDA

-13.51

EV to Capital Employed

1.64

EV to Sales

3.15

PEG Ratio

Dividend Yield

ROCE (Latest)

-15.77%

ROE (Latest)

-8.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -103.89% (YoY

PRE-TAX PROFIT(Q)

At CNY -18.14 MM has Grown at 82.41%

NET PROFIT(Q)

At CNY -18.04 MM has Grown at 73.16%

-30What is not working for the Company

NET SALES(Q)

At CNY 355.19 MM has Fallen at -36.89%

OPERATING CASH FLOW(Y)

Lowest at CNY 149.11 MM

NET PROFIT(HY)

At CNY -317.54 MM has Grown at -23.34%

ROCE(HY)

Lowest at -7.24%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.75 times

INTEREST(Q)

Highest at CNY 20.53 MM

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

Pre-Tax Profit

At CNY -18.14 MM has Grown at 82.41%

over average net sales of the previous four periods of CNY -103.12 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -18.04 MM has Grown at 73.16%

over average net sales of the previous four periods of CNY -67.22 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -103.89% (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 Wuzhou Zhongheng Group Co., Ltd.

Net Sales

At CNY 355.19 MM has Fallen at -36.89%

over average net sales of the previous four periods of CNY 562.86 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 20.53 MM has Grown at 25.52%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 149.11 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 20.53 MM

in the last five periods and Increased by 25.52% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 1.75 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio