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

Negative 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 -18.39%, its profits have fallen by -18.4%

Below par performance in long term as well as near term

Along with generating -18.39% 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 hold?

Overall Portfolio exposure to Guangzheng Eye Hospital Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

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

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangzheng Eye Hospital Group Co., Ltd.

-4.73%

0.23

39.26%

China Shanghai Composite

0.9%

1.20

14.07%

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)

-0.13

Debt to EBITDA (avg)

4.01

Net Debt to Equity (avg)

3.63

Sales to Capital Employed (avg)

1.44

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.09%

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

18.87

EV to EBIT

88.03

EV to EBITDA

21.41

EV to Capital Employed

4.43

EV to Sales

2.46

PEG Ratio

Dividend Yield

ROCE (Latest)

5.03%

ROE (Latest)

-26.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

26What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 126.27 MM

INTEREST COVERAGE RATIO(Q)

Highest at 456.17

RAW MATERIAL COST(Y)

Fallen by -7.64% (YoY

OPERATING PROFIT(Q)

Highest at CNY 33.66 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.57 %

PRE-TAX PROFIT(Q)

Highest at CNY 25.38 MM

NET PROFIT(Q)

Highest at CNY 21.61 MM

EPS(Q)

Highest at CNY 0.04

-3What is not working for the Company

NET SALES(HY)

At CNY 390.14 MM has Grown at -10.55%

CASH AND EQV(HY)

Lowest at CNY 96.2 MM

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

Pre-Tax Profit

At CNY 25.38 MM has Grown at 4,385.1%

over average net sales of the previous four periods of CNY -0.59 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 21.61 MM has Grown at 461.59%

over average net sales of the previous four periods of CNY -5.98 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Interest Coverage Ratio

Highest at 456.17

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at CNY 126.27 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Operating Profit

Highest at CNY 33.66 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 16.57 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 25.38 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 21.61 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -7.64% (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.

Net Sales

At CNY 390.14 MM has Grown at -10.55%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 96.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

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