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. ?

With a fall in Net Sales of -40.04%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY 129.91 MM
INTEREST(HY) At CNY 4.5 MM has Grown at 14.52%
ROCE(HY) Lowest at 5.5%

With ROE of 5.32%, it has a very expensive valuation with a 1.32 Price to Book Value

Over the past year, while the stock has generated a return of -46.77%, its profits have fallen by -33.5%

Below par performance in long term as well as near term

Along with generating -46.77% 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, Low Return

Absolute

Risk Adjusted

Volatility

Guangzhou Wahlap Technology Co., Ltd.

-47.84%

-0.08

37.14%

China Shanghai Composite

16.78%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.99%

EBIT Growth (5y)

13.34%

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

31.91%

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

1.32

EV to EBIT

16.65

EV to EBITDA

8.19

EV to Capital Employed

1.33

EV to Sales

1.27

PEG Ratio

Dividend Yield

ROCE (Latest)

7.96%

ROE (Latest)

5.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-38What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 129.91 MM

INTEREST(HY)

At CNY 4.5 MM has Grown at 14.52%

ROCE(HY)

Lowest at 5.5%

RAW MATERIAL COST(Y)

Grown by 28.21% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.13 times

NET SALES(Q)

Lowest at CNY 153.06 MM

OPERATING PROFIT(Q)

Lowest at CNY -7.28 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -4.76 %

PRE-TAX PROFIT(Q)

Lowest at CNY -9.15 MM

NET PROFIT(Q)

Lowest at CNY -9.13 MM

EPS(Q)

Lowest at CNY -0.07

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

Net Sales

At CNY 153.06 MM has Fallen at -38.61%

over average net sales of the previous four periods of CNY 249.32 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -9.15 MM has Fallen at -142.13%

over average net sales of the previous four periods of CNY 21.72 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -9.13 MM has Fallen at -151.23%

over average net sales of the previous four periods of CNY 17.83 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 4.5 MM has Grown at 14.52%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 129.91 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)

Net Sales

Lowest at CNY 153.06 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -7.28 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -4.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -9.15 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 -9.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 2.13 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 28.21% (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