Guangzheng Eye Hospital Group Co., Ltd. (002524) 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

Guangzheng Eye Hospital Group Co., Ltd.

Why is Guangzheng Eye Hospital Group Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 1.45%

Poor long term growth as Net Sales has grown by an annual rate of -3.27% and Operating profit at 11.47% over the last 5 years
The company is Net-Debt Free

Flat results in Mar 26

PRE-TAX PROFIT(Q) At CNY -0.99 MM has Fallen at -2,047.73%
NET PROFIT(HY) At CNY -23.51 MM has Grown at -26.12%
INTEREST COVERAGE RATIO(Q) Lowest at 76.52

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 -20.05%, its profits have fallen by -18.4%

Below par performance in long term as well as near term

Along with generating -20.05% 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 Pharmaceuticals & Biotechnology)

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

Is Guangzheng Eye Hospital Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangzheng Eye Hospital Group Co., Ltd.

-22.71%

0.10

37.83%

China Shanghai Composite

16.78%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.27%

EBIT Growth (5y)

11.47%

EBIT to Interest (avg)

-0.19

Debt to EBITDA (avg)

3.99

Net Debt to Equity (avg)

3.63

Sales to Capital Employed (avg)

1.44

Tax Ratio

10.35%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.45%

ROE (avg)

10.23%

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

19.71

EV to EBIT

91.27

EV to EBITDA

22.20

EV to Capital Employed

4.59

EV to Sales

2.55

PEG Ratio

Dividend Yield

ROCE (Latest)

5.03%

ROE (Latest)

-26.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 141.67 MM

RAW MATERIAL COST(Y)

Fallen by -13.84% (YoY

NET PROFIT(9M)

Higher at CNY -24.75 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 18.09 times

-15What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -0.99 MM has Fallen at -2,047.73%

NET PROFIT(HY)

At CNY -23.51 MM has Grown at -26.12%

INTEREST COVERAGE RATIO(Q)

Lowest at 76.52

OPERATING PROFIT MARGIN(Q)

Lowest at 3.19 %

CASH AND EQV(HY)

Lowest at CNY 94.91 MM

DEBT-EQUITY RATIO (HY)

Highest at 821.24 %

NET SALES(Q)

Lowest at CNY 187.04 MM

OPERATING PROFIT(Q)

Lowest at CNY 5.97 MM

Here's what is working for Guangzheng Eye Hospital Group Co., Ltd.

Operating Cash Flow

Highest at CNY 141.67 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)

Inventory Turnover Ratio

Highest at 18.09 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -13.84% (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 Guangzheng Eye Hospital Group Co., Ltd.

Pre-Tax Profit

At CNY -0.99 MM has Fallen at -2,047.73%

over average net sales of the previous four periods of CNY -0.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 187.04 MM has Fallen at -15.48%

over average net sales of the previous four periods of CNY 221.3 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 76.52

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 3.19 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY -23.51 MM has Grown at -26.12%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 187.04 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 5.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Cash and Eqv

Lowest at CNY 94.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 821.24 %

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