Guangzhou Wahlap Technology 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 Wahlap Technology Co., Ltd.

Why is Guangzhou Wahlap Technology Co., Ltd. ?

The company has declared negative results in Mar'2025 after 7 consecutive positive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 137.07 MM
INTEREST COVERAGE RATIO(Q) Lowest at 1,606.49
INTEREST(Q) Highest at CNY 2.32 MM

With ROE of 11.05%, it has a expensive valuation with a 5.73 Price to Book Value

Over the past year, while the stock has generated a return of -19.00%, its profits have risen by 18.7% ; the PEG ratio of the company is 2.8

Below par performance in long term as well as near term

Along with generating -19.00% 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 Diversified)

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

Is Guangzhou Wahlap Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangzhou Wahlap Technology Co., Ltd.

-19.0%

1.11

50.60%

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)

17.78%

EBIT Growth (5y)

9.62%

EBIT to Interest (avg)

8.12

Debt to EBITDA (avg)

0.78

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

1.03

Tax Ratio

14.84%

Dividend Payout Ratio

34.66%

Pledged Shares

Institutional Holding

ROCE (avg)

8.89%

ROE (avg)

6.55%

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

5.73

EV to EBIT

39.00

EV to EBITDA

21.45

EV to Capital Employed

5.54

EV to Sales

4.25

PEG Ratio

2.78

Dividend Yield

ROCE (Latest)

14.20%

ROE (Latest)

11.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.21% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -1.14 %

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 137.07 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 1,606.49

INTEREST(Q)

Highest at CNY 2.32 MM

OPERATING PROFIT(Q)

Lowest at CNY 37.23 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.26 %

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

Debt-Equity Ratio

Lowest at -1.14 %

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 -7.21% (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 Wahlap Technology Co., Ltd.

Interest

At CNY 2.32 MM has Grown at 14.58%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,606.49

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 137.07 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 2.32 MM

in the last five periods and Increased by 14.58% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 37.23 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 14.26 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales