Guangzhou Haozhi Industrial Co., Ltd. (300503) 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

Guangzhou Haozhi Industrial Co., Ltd.

Why is Guangzhou Haozhi Industrial Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 17.34% and Operating profit at 23.00% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.56% signifying low profitability per unit of shareholders funds

Positive results in Jun 25

ROCE(HY) Highest at 7.57%
NET SALES(Q) Highest at CNY 411.31 MM
OPERATING PROFIT(Q) Highest at CNY 80.94 MM

With ROE of 6.94%, it has a very expensive valuation with a 4.66 Price to Book Value

Over the past year, while the stock has generated a return of 64.25%, its profits have risen by 420.6% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.3

Market Beating performance in long term as well as near term

Along with generating 64.25% 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 hold?

Overall Portfolio exposure to Guangzhou Haozhi Industrial Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Guangzhou Haozhi Industrial Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangzhou Haozhi Industrial Co., Ltd.

55.01%

2.31

60.20%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.34%

EBIT Growth (5y)

23.00%

EBIT to Interest (avg)

1.79

Debt to EBITDA (avg)

5.19

Net Debt to Equity (avg)

0.56

Sales to Capital Employed (avg)

0.56

Tax Ratio

13.22%

Dividend Payout Ratio

19.57%

Pledged Shares

Institutional Holding

ROCE (avg)

4.39%

ROE (avg)

5.56%

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

4.66

EV to EBIT

67.96

EV to EBITDA

30.46

EV to Capital Employed

3.19

EV to Sales

4.90

PEG Ratio

0.16

Dividend Yield

0.28%

ROCE (Latest)

4.69%

ROE (Latest)

6.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

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

11What is working for the Company

ROCE(HY)

Highest at 7.57%

NET SALES(Q)

Highest at CNY 411.31 MM

OPERATING PROFIT(Q)

Highest at CNY 80.94 MM

PRE-TAX PROFIT(Q)

Highest at CNY 55.45 MM

NET PROFIT(Q)

Highest at CNY 47.8 MM

EPS(Q)

Highest at CNY 0.16

-10What is not working for the Company

INTEREST(9M)

At CNY 39.32 MM has Grown at 34.85%

RAW MATERIAL COST(Y)

Grown by 10.21% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 71.89 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.77%

Here's what is working for Guangzhou Haozhi Industrial Co., Ltd.

Net Sales

Highest at CNY 411.31 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 80.94 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 55.45 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 47.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Guangzhou Haozhi Industrial Co., Ltd.

Interest

At CNY 18.86 MM has Grown at 14.49%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 71.89 %

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 1.77%

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 10.21% (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