Guangzhou Zhujiang Brewery Co., Ltd. (002461) 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 Zhujiang Brewery Co., Ltd.

Why is Guangzhou Zhujiang Brewery Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.89% and Operating profit at 10.53% over the last 5 years

Flat results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at -51.58 %
DEBTORS TURNOVER RATIO(HY) Lowest at 92.62 times

With ROE of 8.27%, it has a fair valuation with a 1.81 Price to Book Value

Over the past year, while the stock has generated a return of -29.21%, its profits have risen by 7.3% ; the PEG ratio of the company is 3
At the current price, the company has a high dividend yield of 1.9

Below par performance in long term as well as near term

Along with generating -29.21% 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 hold?

Overall Portfolio exposure to Guangzhou Zhujiang Brewery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Beverages should be less than 30%

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

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

Is Guangzhou Zhujiang Brewery Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangzhou Zhujiang Brewery Co., Ltd.

-29.21%

-0.09

24.05%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.89%

EBIT Growth (5y)

10.53%

EBIT to Interest (avg)

15.52

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.53

Sales to Capital Employed (avg)

0.45

Tax Ratio

13.50%

Dividend Payout Ratio

46.52%

Pledged Shares

Institutional Holding

ROCE (avg)

11.48%

ROE (avg)

6.96%

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

1.81

EV to EBIT

17.82

EV to EBITDA

13.54

EV to Capital Employed

2.68

EV to Sales

2.44

PEG Ratio

2.99

Dividend Yield

1.85%

ROCE (Latest)

15.02%

ROE (Latest)

8.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,395.94 MM

RAW MATERIAL COST(Y)

Fallen by -14.15% (YoY

CASH AND EQV(HY)

Highest at CNY 16,123.67 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.98 times

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -51.58 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 92.62 times

Here's what is working for Guangzhou Zhujiang Brewery Co., Ltd.

Operating Cash Flow

Highest at CNY 1,395.94 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)

Cash and Eqv

Highest at CNY 16,123.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 4.98 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -14.15% (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 Zhujiang Brewery Co., Ltd.

Debt-Equity Ratio

Highest at -51.58 %

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

Debtors Turnover Ratio

Lowest at 92.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio