Guanhao Biotech Co., Ltd. (300238) 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

Guanhao Biotech Co., Ltd.

Why is Guanhao Biotech Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.90%

The company has been able to generate a Return on Capital Employed (avg) of 4.90% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -3.85% and Operating profit at -14.96% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At CNY 7.79 MM has Grown at -46.08%
INTEREST(HY) At CNY 2.17 MM has Grown at 36.39%
OPERATING CASH FLOW(Y) Lowest at CNY 42.62 MM

With ROE of 1.25%, it has a very expensive valuation with a 5.23 Price to Book Value

Over the past year, while the stock has generated a return of -27.92%, its profits have fallen by -54.2%

Below par performance in long term as well as near term

Along with generating -27.92% 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 Pharmaceuticals & Biotechnology)

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

Is Guanhao Biotech Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Guanhao Biotech Co., Ltd.

-27.92%

0.42

42.52%

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)

-3.85%

EBIT Growth (5y)

-14.96%

EBIT to Interest (avg)

-9.65

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

0.59

Tax Ratio

39.74%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.90%

ROE (avg)

3.69%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

418

Industry P/E

Price to Book Value

5.23

EV to EBIT

145.12

EV to EBITDA

74.88

EV to Capital Employed

5.31

EV to Sales

7.83

PEG Ratio

Dividend Yield

ROCE (Latest)

3.66%

ROE (Latest)

1.25%

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

No Trend

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.04% (YoY

PRE-TAX PROFIT(Q)

At CNY 10.51 MM has Grown at 65.89%

NET PROFIT(Q)

At CNY 10.16 MM has Grown at 66.96%

-18What is not working for the Company

NET PROFIT(HY)

At CNY 7.79 MM has Grown at -46.08%

INTEREST(HY)

At CNY 2.17 MM has Grown at 36.39%

OPERATING CASH FLOW(Y)

Lowest at CNY 42.62 MM

Here's what is working for Guanhao Biotech Co., Ltd.

Pre-Tax Profit

At CNY 10.51 MM has Grown at 65.89%

over average net sales of the previous four periods of CNY 6.34 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 10.16 MM has Grown at 66.96%

over average net sales of the previous four periods of CNY 6.09 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -6.04% (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 Guanhao Biotech Co., Ltd.

Interest

At CNY 2.17 MM has Grown at 36.39%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 42.62 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)