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

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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 5.61% and Operating profit at -213.71% over the last 5 years
The company is Net-Debt Free
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 5.61% and Operating profit at -213.71% over the last 5 years

With a growth in Net Sales of 88.72%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 5 consecutive negative quarters
OPERATING CASH FLOW(Y) Highest at CNY 314.38 MM
RAW MATERIAL COST(Y) Fallen by -113% (YoY)
NET SALES(Q) At CNY 863.95 MM has Grown at 32.63%

With ROE of -4.58%, it has a risky valuation with a 4.75 Price to Book Value

Over the past year, while the stock has generated a return of 127.58%, its profits have fallen by -12.9%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangzhou Zhiguang Electric Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangzhou Zhiguang Electric Co., Ltd.

127.58%

4.29

47.54%

China Shanghai Composite

22.32%

1.71

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.61%

EBIT Growth (5y)

-213.71%

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)

0.52

Tax Ratio

14.37%

Dividend Payout Ratio

45.61%

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

4.75

EV to EBIT

-106.51

EV to EBITDA

1037.53

EV to Capital Employed

2.90

EV to Sales

4.71

PEG Ratio

Dividend Yield

0.49%

ROCE (Latest)

-2.72%

ROE (Latest)

-4.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

23What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 314.38 MM

RAW MATERIAL COST(Y)

Fallen by -113% (YoY

NET SALES(Q)

At CNY 863.95 MM has Grown at 32.63%

PRE-TAX PROFIT(Q)

Highest at CNY 15.69 MM

NET PROFIT(Q)

Highest at CNY 3.64 MM

EPS(Q)

Highest at CNY 0.01

-9What is not working for the Company

INTEREST(HY)

At CNY 62.29 MM has Grown at 11.77%

DEBT-EQUITY RATIO (HY)

Highest at 97.95 %

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

Operating Cash Flow

Highest at CNY 314.38 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 15.69 MM has Grown at 122.75%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 3.64 MM has Grown at 105.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 863.95 MM has Grown at 32.63%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 15.69 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 3.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -113% (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.

Interest

At CNY 62.29 MM has Grown at 11.77%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 97.95 %

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

Non Operating Income

Highest at CNY 1.11 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income