Guangzhou Hengyun Enterprises Holding Ltd. (000531) 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 Hengyun Enterprises Holding Ltd.

Why is Guangzhou Hengyun Enterprises Holding Ltd. ?

Poor Management Efficiency with a low ROCE of 2.50%

The company has been able to generate a Return on Capital Employed (avg) of 2.50% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 2.90% and Operating profit at -10.44% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.58% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.90% and Operating profit at -10.44% over the last 5 years

OPERATING CASH FLOW(Y) Highest at CNY 1,033.02 MM
ROCE(HY) Highest at 6.21%
DIVIDEND PAYOUT RATIO(Y) Highest at 27.83%

With ROE of 6.47%, it has a very attractive valuation with a 1.07 Price to Book Value

Over the past year, while the stock has generated a return of 12.94%, its profits have risen by 108.1% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 1.5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangzhou Hengyun Enterprises Holding Ltd. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

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

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

Is Guangzhou Hengyun Enterprises Holding Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Guangzhou Hengyun Enterprises Holding Ltd.

12.94%

0.72

34.53%

China Shanghai Composite

22.32%

1.71

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.90%

EBIT Growth (5y)

-10.44%

EBIT to Interest (avg)

0.64

Debt to EBITDA (avg)

23.26

Net Debt to Equity (avg)

1.30

Sales to Capital Employed (avg)

0.27

Tax Ratio

1.38%

Dividend Payout Ratio

37.61%

Pledged Shares

Institutional Holding

ROCE (avg)

2.50%

ROE (avg)

4.58%

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

1.07

EV to EBIT

43.86

EV to EBITDA

21.90

EV to Capital Employed

1.03

EV to Sales

3.73

PEG Ratio

0.15

Dividend Yield

1.54%

ROCE (Latest)

2.35%

ROE (Latest)

6.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

26What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,033.02 MM

ROCE(HY)

Highest at 6.21%

DIVIDEND PAYOUT RATIO(Y)

Highest at 27.83%

RAW MATERIAL COST(Y)

Fallen by -56.46% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 118.04 %

DIVIDEND PER SHARE(HY)

Highest at CNY 6.75

PRE-TAX PROFIT(Q)

Highest at CNY 54.65 MM

NET PROFIT(Q)

Highest at CNY 222.42 MM

EPS(Q)

Highest at CNY 0.22

-8What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 231.24

CASH AND EQV(HY)

Lowest at CNY 2,219.16 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 16.42 times

OPERATING PROFIT(Q)

Lowest at CNY 142.67 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.83 %

Here's what is working for Guangzhou Hengyun Enterprises Holding Ltd.

Pre-Tax Profit

At CNY 54.65 MM has Grown at 485.68%

over average net sales of the previous four periods of CNY -14.17 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 1,033.02 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 222.42 MM has Grown at 205.19%

over average net sales of the previous four periods of CNY 72.88 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 54.65 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 222.42 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.22

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at 118.04 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at CNY 6.75

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 27.83%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -56.46% (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 Guangzhou Hengyun Enterprises Holding Ltd.

Interest Coverage Ratio

Lowest at 231.24

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 142.67 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.83 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 2,219.16 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 16.42 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio