Guangzhou Development Group, Inc. (600098) 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

Guangzhou Development Group, Inc.

Why is Guangzhou Development Group, Inc. ?

OPERATING CASH FLOW(Y) Highest at CNY 5,806.09 MM
NET PROFIT(HY) At CNY 1,706.56 MM has Grown at 49.78%
ROCE(HY) Highest at 8.51%

With ROE of 8.94%, it has a very attractive valuation with a 0.86 Price to Book Value

Over the past year, while the stock has generated a return of 26.57%, its profits have risen by 26.7% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 4.1

Market Beating performance in long term as well as near term

Along with generating 26.57% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Guangzhou Development Group, Inc. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Guangzhou Development Group, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangzhou Development Group, Inc.

25.24%

0.54

21.98%

China Shanghai Composite

16.67%

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)

10.18%

EBIT Growth (5y)

6.72%

EBIT to Interest (avg)

2.64

Debt to EBITDA (avg)

4.41

Net Debt to Equity (avg)

1.07

Sales to Capital Employed (avg)

0.80

Tax Ratio

18.57%

Dividend Payout Ratio

54.67%

Pledged Shares

Institutional Holding

ROCE (avg)

16,734.47%

ROE (avg)

4,178.74%

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

0.86

EV to EBIT

25.65

EV to EBITDA

11.61

EV to Capital Employed

0.94

EV to Sales

1.16

PEG Ratio

0.59

Dividend Yield

4.10%

ROCE (Latest)

3.65%

ROE (Latest)

8.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 5,806.09 MM

NET PROFIT(HY)

At CNY 1,706.56 MM has Grown at 49.78%

ROCE(HY)

Highest at 8.51%

DIVIDEND PAYOUT RATIO(Y)

Highest at 66.93%

DIVIDEND PER SHARE(HY)

Highest at CNY 10.6

NET SALES(Q)

Highest at CNY 14,631.42 MM

-5What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 13.74% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 113.34 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.6 times

OPERATING PROFIT MARGIN(Q)

Lowest at 5.26 %

Here's what is working for Guangzhou Development Group, Inc.

Operating Cash Flow

Highest at CNY 5,806.09 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 Profit

At CNY 1,706.56 MM has Grown at 49.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 14,631.42 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 14,631.42 MM has Grown at 20.04%

over average net sales of the previous four periods of CNY 12,189.28 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Dividend per share

Highest at CNY 10.6

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 66.93%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Guangzhou Development Group, Inc.

Operating Profit Margin

Lowest at 5.26 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 113.34 %

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 10.6 times

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 13.74% (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