Guangzhou Tech-Long Packing Machine Co., Ltd. (002209) 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 Tech-Long Packing Machine Co., Ltd.

Why is Guangzhou Tech-Long Packing Machine 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 18.26% and Operating profit at 169.74% 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 5.66% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 8 consecutive quarters

NET PROFIT(HY) At CNY 73.74 MM has Grown at 120.73%
NET SALES(HY) At CNY 938.02 MM has Grown at 29.51%
ROCE(HY) Highest at 17.37%

With ROE of 16.47%, it has a attractive valuation with a 3.72 Price to Book Value

Over the past year, while the stock has generated a return of 43.58%, its profits have risen by 147.8% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.3

Market Beating performance in long term as well as near term

Along with generating 43.58% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangzhou Tech-Long Packing Machine 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 Tech-Long Packing Machine Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangzhou Tech-Long Packing Machine Co., Ltd.

-100.0%

2.67

43.69%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.26%

EBIT Growth (5y)

169.74%

EBIT to Interest (avg)

3.19

Debt to EBITDA (avg)

2.62

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

1.25

Tax Ratio

21.64%

Dividend Payout Ratio

14.63%

Pledged Shares

Institutional Holding

ROCE (avg)

5.30%

ROE (avg)

5.66%

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

3.72

EV to EBIT

18.17

EV to EBITDA

14.06

EV to Capital Employed

3.88

EV to Sales

1.58

PEG Ratio

0.15

Dividend Yield

0.35%

ROCE (Latest)

21.35%

ROE (Latest)

16.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

16What is working for the Company

NET PROFIT(HY)

At CNY 73.74 MM has Grown at 120.73%

NET SALES(HY)

At CNY 938.02 MM has Grown at 29.51%

ROCE(HY)

Highest at 17.37%

CASH AND EQV(HY)

Highest at CNY 1,439.14 MM

-26What is not working for the Company

NET SALES(Q)

At CNY 377.24 MM has Fallen at -19.15%

OPERATING CASH FLOW(Y)

Lowest at CNY 143.55 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 450.35

RAW MATERIAL COST(Y)

Grown by 11.86% (YoY

INTEREST(Q)

Highest at CNY 2.2 MM

OPERATING PROFIT(Q)

Lowest at CNY 9.93 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.63 %

PRE-TAX PROFIT(Q)

Lowest at CNY 10.32 MM

NET PROFIT(Q)

Lowest at CNY 12.37 MM

EPS(Q)

Lowest at CNY 0.06

Here's what is working for Guangzhou Tech-Long Packing Machine Co., Ltd.

Cash and Eqv

Highest at CNY 1,439.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Guangzhou Tech-Long Packing Machine Co., Ltd.

Net Sales

At CNY 377.24 MM has Fallen at -19.15%

over average net sales of the previous four periods of CNY 466.61 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 10.32 MM has Fallen at -74.48%

over average net sales of the previous four periods of CNY 40.45 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 12.37 MM has Fallen at -62.54%

over average net sales of the previous four periods of CNY 33.02 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 2.2 MM has Grown at 26.73%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 450.35

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 143.55 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 2.2 MM

in the last five periods and Increased by 26.73% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 9.93 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 10.32 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 12.37 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 11.86% (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