Why is Guangzhou Seagull Kitchen & Bath Products Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.64%
- The company has been able to generate a Return on Capital Employed (avg) of 2.64% signifying low profitability per unit of total capital (equity and debt)
2
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 0.75% and Operating profit at -198.49% 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 2.73% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 0.75% and Operating profit at -198.49% over the last 5 years
4
Negative results in Mar 25
- OPERATING CASH FLOW(Y) Lowest at CNY 155.7 MM
- NET SALES(Q) Lowest at CNY 652.97 MM
5
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 23.15%, its profits have risen by 40.5%
- At the current price, the company has a high dividend yield of 0
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 Building Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Guangzhou Seagull Kitchen & Bath Products Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Guangzhou Seagull Kitchen & Bath Products Co., Ltd.
35.96%
0.94
55.16%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
0.75%
EBIT Growth (5y)
-198.49%
EBIT to Interest (avg)
-0.77
Debt to EBITDA (avg)
3.03
Net Debt to Equity (avg)
0.19
Sales to Capital Employed (avg)
1.04
Tax Ratio
4.01%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.64%
ROE (avg)
2.73%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.54
EV to EBIT
-7.44
EV to EBITDA
-144.48
EV to Capital Employed
0.63
EV to Sales
0.40
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-8.46%
ROE (Latest)
-12.55%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
12What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -0.47% (YoY
CASH AND EQV(HY)
Highest at CNY 1,411.18 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 24.09 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3.34%
DEBTORS TURNOVER RATIO(HY)
Highest at 4.01%
PRE-TAX PROFIT(Q)
At CNY -9.05 MM has Grown at 70.42%
NET PROFIT(Q)
At CNY -6.07 MM has Grown at 80.4%
-4What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 155.7 MM
NET SALES(Q)
Lowest at CNY 652.97 MM
Here's what is working for Guangzhou Seagull Kitchen & Bath Products Co., Ltd.
Pre-Tax Profit
At CNY -9.05 MM has Grown at 70.42%
over average net sales of the previous four periods of CNY -30.58 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -6.07 MM has Grown at 80.4%
over average net sales of the previous four periods of CNY -30.95 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Cash and Eqv
Highest at CNY 1,411.18 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 24.09 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3.34%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 4.01%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -0.47% (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 Seagull Kitchen & Bath Products Co., Ltd.
Operating Cash Flow
Lowest at CNY 155.7 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Sales
Lowest at CNY 652.97 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Net Sales
At CNY 652.97 MM has Fallen at -7.92%
over average net sales of the previous four periods of CNY 709.18 MMMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)






