Guangzhou Holike Creative Home Co., Ltd. (603898) 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 Holike Creative Home Co., Ltd.

Why is Guangzhou Holike Creative Home Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -2.31% and Operating profit at -31.88% over the last 5 years

With a fall in Net Sales of -15.37%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 4 consecutive quarters
PRE-TAX PROFIT(Q) At CNY 1.78 MM has Fallen at -82.83%
NET PROFIT(Q) At CNY 1.51 MM has Fallen at -88.08%
ROCE(HY) Lowest at 2.24%

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 Furniture, Home Furnishing)

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

Is Guangzhou Holike Creative Home Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangzhou Holike Creative Home Co., Ltd.

36.13%

1.83

41.24%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.31%

EBIT Growth (5y)

-31.88%

EBIT to Interest (avg)

5.14

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

0.58

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

30.15%

Pledged Shares

Institutional Holding

ROCE (avg)

8.22%

ROE (avg)

7.78%

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

1.01

EV to EBIT

50.98

EV to EBITDA

11.51

EV to Capital Employed

1.01

EV to Sales

1.22

PEG Ratio

Dividend Yield

0.77%

ROCE (Latest)

1.98%

ROE (Latest)

1.87%

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

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 439.62 MM

DEBT-EQUITY RATIO (HY)

Lowest at -30.47 %

-29What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 1.78 MM has Fallen at -82.83%

NET PROFIT(Q)

At CNY 1.51 MM has Fallen at -88.08%

ROCE(HY)

Lowest at 2.24%

INTEREST COVERAGE RATIO(Q)

Lowest at 38.79

RAW MATERIAL COST(Y)

Grown by 10.46% (YoY

NET SALES(Q)

Lowest at CNY 384.84 MM

OPERATING PROFIT(Q)

Lowest at CNY 3.61 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.94 %

Here's what is working for Guangzhou Holike Creative Home Co., Ltd.

Operating Cash Flow

Highest at CNY 439.62 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at -30.47 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Guangzhou Holike Creative Home Co., Ltd.

Pre-Tax Profit

At CNY 1.78 MM has Fallen at -82.83%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1.51 MM has Fallen at -88.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 38.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 384.84 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 3.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.94 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 10.46% (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

Non Operating Income

Highest at CNY 2.96 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income