Guoguang Electric Co., Ltd. (002045) 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

Guoguang Electric Co., Ltd.

Why is Guoguang Electric Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.94%

The company has been able to generate a Return on Capital Employed (avg) of 4.94% 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 16.22% and Operating profit at -29.67% 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 7.39% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 16.22% and Operating profit at -29.67% over the last 5 years

With a fall in Operating Profit of -33.75%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 3 consecutive quarters
INTEREST(HY) At CNY 32.7 MM has Grown at 83.14%
PRE-TAX PROFIT(Q) At CNY 1.59 MM has Fallen at -97.37%
NET PROFIT(Q) At CNY 14.17 MM has Fallen at -77.46%

With ROE of 4.34%, it has a expensive valuation with a 1.78 Price to Book Value

Over the past year, while the stock has generated a return of 10.71%, its profits have fallen by -51.7%

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 Guoguang Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guoguang Electric Co., Ltd.

-100.0%

0.53

58.22%

China Shanghai Composite

15.19%

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)

16.22%

EBIT Growth (5y)

-29.67%

EBIT to Interest (avg)

2.85

Debt to EBITDA (avg)

3.44

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

1.22

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.94%

ROE (avg)

7.39%

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

1.78

EV to EBIT

172.83

EV to EBITDA

32.93

EV to Capital Employed

1.78

EV to Sales

0.92

PEG Ratio

Dividend Yield

ROCE (Latest)

1.03%

ROE (Latest)

4.34%

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 Bullish

No Trend

OBV

Mildly Bullish

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

10What is working for the Company

NET SALES(HY)

At CNY 3,920.93 MM has Grown at 36.89%

RAW MATERIAL COST(Y)

Fallen by -32.82% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 7.6%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.46%

-29What is not working for the Company

INTEREST(HY)

At CNY 32.7 MM has Grown at 83.14%

PRE-TAX PROFIT(Q)

At CNY 1.59 MM has Fallen at -97.37%

NET PROFIT(Q)

At CNY 14.17 MM has Fallen at -77.46%

OPERATING CASH FLOW(Y)

Lowest at CNY 84.01 MM

ROCE(HY)

Lowest at 6.07%

NET SALES(Q)

At CNY 1,727.99 MM has Fallen at -12.16%

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

Inventory Turnover Ratio

Highest at 7.6%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.46%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -32.82% (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 Guoguang Electric Co., Ltd.

Interest

At CNY 32.7 MM has Grown at 83.14%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 1.59 MM has Fallen at -97.37%

over average net sales of the previous four periods of CNY 60.57 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 14.17 MM has Fallen at -77.46%

over average net sales of the previous four periods of CNY 62.88 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,727.99 MM has Fallen at -12.16%

over average net sales of the previous four periods of CNY 1,967.17 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 84.01 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)