Guangzhou Newlife New Material 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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guangzhou Newlife New Material Co., Ltd.

Why is Guangzhou Newlife New Material Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 14.03% and Operating profit at -4.59% over the last 5 years

With a growth in Net Profit of 33.73%, the company declared Very Positive results in Mar 26

NET SALES(Q) Highest at CNY 274.43 MM
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by 1.62% (YoY)

With ROE of 6.47%, it has a attractive valuation with a 2.60 Price to Book Value

Over the past year, while the stock has generated a return of 120.22%, its profits have fallen by -0.4%

Market Beating Performance

The stock has generated a return of 120.22% in the last 1 year, much higher than market (China Shanghai Composite) returns of 24.02%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangzhou Newlife New Material 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 Newlife New Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangzhou Newlife New Material Co., Ltd.

120.22%

3.32

59.04%

China Shanghai Composite

24.02%

1.81

13.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.03%

EBIT Growth (5y)

-4.59%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.42

Tax Ratio

9.56%

Dividend Payout Ratio

37.68%

Pledged Shares

Institutional Holding

ROCE (avg)

14.31%

ROE (avg)

9.07%

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

2.60

EV to EBIT

42.23

EV to EBITDA

35.29

EV to Capital Employed

3.57

EV to Sales

5.10

PEG Ratio

Dividend Yield

ROCE (Latest)

8.46%

ROE (Latest)

6.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Bullish

OBV

No Trend

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

14What is working for the Company

NET SALES(Q)

Highest at CNY 274.43 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by 1.62% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -51.7 %

PRE-TAX PROFIT(Q)

Highest at CNY 41.33 MM

NET PROFIT(Q)

Highest at CNY 38.49 MM

EPS(Q)

Highest at CNY 0.38

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 60.68 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.56 times

Here's what is working for Guangzhou Newlife New Material Co., Ltd.

Net Sales

Highest at CNY 274.43 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

At CNY 274.43 MM has Grown at 32.89%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 41.33 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 38.49 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.38

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -51.7 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by 1.62% (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 Newlife New Material Co., Ltd.

Operating Cash Flow

Lowest at CNY 60.68 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Lowest at 3.56 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio