GuoCheng Mining Co., Ltd. (000688) 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

GuoCheng Mining Co., Ltd.

Why is GuoCheng Mining Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.63%

The company has been able to generate a Return on Capital Employed (avg) of 3.63% 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 35.89% and Operating profit at 33.21% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 6.41% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 35.89% and Operating profit at 33.21% over the last 5 years

With a growth in Net Profit of 102.82%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 1,804.12 MM
PRE-TAX PROFIT(Q) At CNY 528.93 MM has Grown at 153.75%
RAW MATERIAL COST(Y) Fallen by -24.78% (YoY)

With ROE of 18.08%, it has a very expensive valuation with a 14.36 Price to Book Value

Over the past year, while the stock has generated a return of 163.00%, its profits have fallen by -24%
At the current price, the company has a high dividend yield of 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GuoCheng Mining Co., Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

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

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

Is GuoCheng Mining Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

GuoCheng Mining Co., Ltd.

157.05%

2.51

70.65%

China Shanghai Composite

19.22%

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)

35.89%

EBIT Growth (5y)

33.21%

EBIT to Interest (avg)

13.72

Debt to EBITDA (avg)

4.01

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.39

Tax Ratio

27.93%

Dividend Payout Ratio

13.44%

Pledged Shares

Institutional Holding

ROCE (avg)

3.63%

ROE (avg)

6.41%

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

14.36

EV to EBIT

88.68

EV to EBITDA

59.57

EV to Capital Employed

7.38

EV to Sales

10.75

PEG Ratio

Dividend Yield

0.34%

ROCE (Latest)

8.32%

ROE (Latest)

18.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

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

25What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,804.12 MM

PRE-TAX PROFIT(Q)

At CNY 528.93 MM has Grown at 153.75%

RAW MATERIAL COST(Y)

Fallen by -24.78% (YoY

CASH AND EQV(HY)

Highest at CNY 2,244.06 MM

NET SALES(Q)

Highest at CNY 1,696.22 MM

OPERATING PROFIT(Q)

Highest at CNY 600.39 MM

OPERATING PROFIT MARGIN(Q)

Highest at 35.4 %

NET PROFIT(Q)

At CNY 354.46 MM has Grown at 79.87%

-7What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 140.52 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.26 times

INTEREST(Q)

Highest at CNY 62.82 MM

Here's what is working for GuoCheng Mining Co., Ltd.

Net Sales

At CNY 1,696.22 MM has Grown at 83.21%

over average net sales of the previous four periods of CNY 925.84 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 528.93 MM has Grown at 153.75%

over average net sales of the previous four periods of CNY 208.45 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 1,804.12 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

Highest at CNY 1,696.22 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 600.39 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 35.4 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

At CNY 354.46 MM has Grown at 79.87%

over average net sales of the previous four periods of CNY 197.07 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 2,244.06 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -24.78% (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 GuoCheng Mining Co., Ltd.

Interest

At CNY 62.82 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 62.82 MM

in the last five periods and Increased by inf% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 140.52 %

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 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 8.26 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio