Guangzhou Port Co., Ltd. (601228) 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 Port Co., Ltd.

Why is Guangzhou Port 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 5.66% and Operating profit at 0.97% 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 7.00% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.66% and Operating profit at 0.97% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At CNY 303.67 MM has Grown at -41.93%
INTEREST(HY) At CNY 253.72 MM has Grown at 9.83%
ROCE(HY) Lowest at 4.37%

With ROE of 4.76%, it has a very expensive valuation with a 1.22 Price to Book Value

Over the past year, while the stock has generated a return of -6.46%, its profits have fallen by -27.6%

Below par performance in long term as well as near term

Along with generating -6.46% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Transport Services)

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

Is Guangzhou Port Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangzhou Port Co., Ltd.

-6.46%

0.11

19.33%

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)

5.66%

EBIT Growth (5y)

0.97%

EBIT to Interest (avg)

4.01

Debt to EBITDA (avg)

4.01

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

0.34

Tax Ratio

30.24%

Dividend Payout Ratio

30.52%

Pledged Shares

Institutional Holding

ROCE (avg)

4.99%

ROE (avg)

7.00%

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

1.22

EV to EBIT

29.45

EV to EBITDA

12.85

EV to Capital Employed

1.14

EV to Sales

2.74

PEG Ratio

Dividend Yield

1.15%

ROCE (Latest)

3.86%

ROE (Latest)

4.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 23.28%

-21What is not working for the Company

NET PROFIT(HY)

At CNY 303.67 MM has Grown at -41.93%

INTEREST(HY)

At CNY 253.72 MM has Grown at 9.83%

ROCE(HY)

Lowest at 4.37%

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.03%

INTEREST COVERAGE RATIO(Q)

Lowest at 270.67

OPERATING PROFIT MARGIN(Q)

Lowest at 10.23 %

RAW MATERIAL COST(Y)

Grown by 15.77% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 62.94 %

OPERATING PROFIT(Q)

Lowest at CNY 346.36 MM

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

Inventory Turnover Ratio

Highest at 23.28%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Net Profit

At CNY 303.67 MM has Grown at -41.93%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 270.67

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 10.23 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Interest

At CNY 253.72 MM has Grown at 9.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 7.03% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY 346.36 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Debt-Equity Ratio

Highest at 62.94 %

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 15.77% (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