Guangzhou Zhiguang Electric Co., Ltd. (002169) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guangzhou Zhiguang Electric Co., Ltd.

Why is Guangzhou Zhiguang Electric Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.29%

The company has been able to generate a Return on Capital Employed (avg) of 0.29% signifying low profitability per unit of total capital (equity and debt)

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 4.66% and Operating profit at -224.78% 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 1.85% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.66% and Operating profit at -224.78% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

NET PROFIT(HY) At CNY -173.42 MM has Grown at -274.83%
INTEREST(HY) At CNY 68.27 MM has Grown at 120.74%
DEBT-EQUITY RATIO (HY) Highest at 77.25 %

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 26.63%, its profits have fallen by -346.4%

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 Electronics & Appliances)

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

Is Guangzhou Zhiguang Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangzhou Zhiguang Electric Co., Ltd.

21.04%

2.24

41.38%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.66%

EBIT Growth (5y)

-224.78%

EBIT to Interest (avg)

-2.50

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

0.50

Tax Ratio

14.37%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.29%

ROE (avg)

1.85%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.22

EV to EBIT

-42.08

EV to EBITDA

-8659.29

EV to Capital Employed

1.56

EV to Sales

3.01

PEG Ratio

Dividend Yield

1.04%

ROCE (Latest)

-3.71%

ROE (Latest)

-7.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 217.92 MM

RAW MATERIAL COST(Y)

Fallen by -65.31% (YoY

NET SALES(Q)

At CNY 653.28 MM has Grown at 24.7%

-18What is not working for the Company

NET PROFIT(HY)

At CNY -173.42 MM has Grown at -274.83%

INTEREST(HY)

At CNY 68.27 MM has Grown at 120.74%

DEBT-EQUITY RATIO (HY)

Highest at 77.25 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.23%

Here's what is working for Guangzhou Zhiguang Electric Co., Ltd.

Operating Cash Flow

Highest at CNY 217.92 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 653.28 MM has Grown at 24.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -65.31% (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 Zhiguang Electric Co., Ltd.

Net Profit

At CNY -173.42 MM has Grown at -274.83%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 68.27 MM has Grown at 120.74%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 77.25 %

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

Inventory Turnover Ratio

Lowest at 3.23%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio