Guangzhou Restaurant Group Co., Ltd. (603043) 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 Restaurant Group Co., Ltd.

Why is Guangzhou Restaurant Group Co., Ltd. ?

With ROE of 13.80%, it has a fair valuation with a 2.56 Price to Book Value

Over the past year, while the stock has generated a return of 14.80%, its profits have fallen by -10.8%
At the current price, the company has a high dividend yield of 3

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Guangzhou Restaurant Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

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

Is Guangzhou Restaurant Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangzhou Restaurant Group Co., Ltd.

-4.53%

0.15

24.17%

China Shanghai Composite

16.67%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.15%

EBIT Growth (5y)

2.20%

EBIT to Interest (avg)

33.22

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

1.11

Tax Ratio

18.29%

Dividend Payout Ratio

55.28%

Pledged Shares

Institutional Holding

ROCE (avg)

29.40%

ROE (avg)

16.32%

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

2.56

EV to EBIT

16.75

EV to EBITDA

10.18

EV to Capital Employed

2.90

EV to Sales

1.66

PEG Ratio

Dividend Yield

2.96%

ROCE (Latest)

17.31%

ROE (Latest)

13.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

8What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 13.72%

RAW MATERIAL COST(Y)

Fallen by -3.91% (YoY

DIVIDEND PER SHARE(HY)

Highest at CNY 10.84

NET SALES(Q)

Highest at CNY 2,293.1 MM

PRE-TAX PROFIT(Q)

Highest at CNY 505.29 MM

NET PROFIT(Q)

Highest at CNY 409.49 MM

EPS(Q)

Highest at CNY 0.73

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 863.25 MM

DEBT-EQUITY RATIO (HY)

Highest at -2.89 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.84 times

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

Net Sales

Highest at CNY 2,293.1 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 505.29 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 409.49 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.73

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Dividend per share

Highest at CNY 10.84

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 13.72%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.91% (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 Restaurant Group Co., Ltd.

Operating Cash Flow

Lowest at CNY 863.25 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -2.89 %

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

Debtors Turnover Ratio

Lowest at 10.84 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio