Guangzhou Jinzhong Auto Parts Manufacturing Co., Ltd. () 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 Jinzhong Auto Parts Manufacturing Co., Ltd.

Why is Guangzhou Jinzhong Auto Parts Manufacturing 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 20.21% and Operating profit at 2.11% 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 6.89% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 2 consecutive quarters

ROCE(HY) Lowest at 6.31%
INTEREST COVERAGE RATIO(Q) Lowest at 347.19
OPERATING PROFIT MARGIN(Q) Lowest at 3.06 %

With ROE of 5.34%, it has a fair valuation with a 0.74 Price to Book Value

Over the past year, while the stock has generated a return of 4.57%, its profits have fallen by -39.2%
At the current price, the company has a high dividend yield of 0.4

Underperformed the market in the last 1 year

The stock has generated a return of 4.57% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%

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 Auto Components & Equipments)

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

Is Guangzhou Jinzhong Auto Parts Manufacturing Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangzhou Jinzhong Auto Parts Manufacturing Co., Ltd.

24.88%

0.57

46.14%

China Shanghai Composite

14.03%

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)

20.21%

EBIT Growth (5y)

2.11%

EBIT to Interest (avg)

20.49

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

0.73

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

18.69%

Pledged Shares

Institutional Holding

ROCE (avg)

6.89%

ROE (avg)

6.89%

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

0.74

EV to EBIT

31.10

EV to EBITDA

11.73

EV to Capital Employed

0.81

EV to Sales

1.10

PEG Ratio

Dividend Yield

0.44%

ROCE (Latest)

2.59%

ROE (Latest)

5.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 169.54 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.09%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.77%

-41What is not working for the Company

ROCE(HY)

Lowest at 6.31%

INTEREST COVERAGE RATIO(Q)

Lowest at 347.19

OPERATING PROFIT MARGIN(Q)

Lowest at 3.06 %

PRE-TAX PROFIT(Q)

Lowest at CNY 9.14 MM

NET PROFIT(Q)

Lowest at CNY 10.89 MM

RAW MATERIAL COST(Y)

Grown by 12.65% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 18.25 %

NET SALES(Q)

Lowest at CNY 233.41 MM

INTEREST(Q)

Highest at CNY 2.05 MM

OPERATING PROFIT(Q)

Lowest at CNY 7.13 MM

EPS(Q)

Lowest at CNY 0.1

Here's what is working for Guangzhou Jinzhong Auto Parts Manufacturing Co., Ltd.

Operating Cash Flow

Highest at CNY 169.54 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)

Inventory Turnover Ratio

Highest at 5.09%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.77%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Guangzhou Jinzhong Auto Parts Manufacturing Co., Ltd.

Pre-Tax Profit

At CNY 9.14 MM has Fallen at -69.76%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 10.89 MM has Fallen at -59.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 2.05 MM has Grown at 170.87%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 347.19

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 3.06 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 9.14 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 10.89 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 233.41 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -11.96%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 2.05 MM

in the last five periods and Increased by 170.87% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 7.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

EPS

Lowest at CNY 0.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 18.25 %

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

Raw Material Cost

Grown by 12.65% (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