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

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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 10.41% and Operating profit at -201.88% over the last 5 years
The company is Net-Debt Free
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 10.41% and Operating profit at -201.88% over the last 5 years

With a fall in Net Sales of -5.77%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 7 consecutive quarters
NET PROFIT(HY) At CNY -134.54 MM has Grown at -779.13%
ROCE(HY) Lowest at -3.93%
DEBT-EQUITY RATIO (HY) Highest at 35.97 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -50.47%, its profits have fallen by -159.6%

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, Low Return

Absolute

Risk Adjusted

Volatility

Guoguang Electric Co., Ltd.

-50.47%

-0.90

36.08%

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)

10.41%

EBIT Growth (5y)

-201.88%

EBIT to Interest (avg)

2.85

Debt to EBITDA (avg)

3.44

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

1.02

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

NA (Loss Making)

Industry P/E

Price to Book Value

0.97

EV to EBIT

-24.28

EV to EBITDA

-94.56

EV to Capital Employed

0.98

EV to Sales

0.72

PEG Ratio

Dividend Yield

0.17%

ROCE (Latest)

-4.02%

ROE (Latest)

-3.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.19% (YoY

CASH AND EQV(HY)

Highest at CNY 6,723.46 MM

-35What is not working for the Company

NET PROFIT(HY)

At CNY -134.54 MM has Grown at -779.13%

ROCE(HY)

Lowest at -3.93%

DEBT-EQUITY RATIO (HY)

Highest at 35.97 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.82 times

NET SALES(Q)

Lowest at CNY 1,532.89 MM

INTEREST(Q)

Highest at CNY 27.71 MM

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

Cash and Eqv

Highest at CNY 6,723.46 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -7.19% (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.

Net Profit

At CNY -134.54 MM has Grown at -779.13%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,532.89 MM has Fallen at -22.39%

over average net sales of the previous four periods of CNY 1,975 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 27.71 MM has Grown at 27.71%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 35.97 % and Grown

In each half year 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

Net Sales

Lowest at CNY 1,532.89 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 27.71 MM

in the last five periods and Increased by 27.71% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 5.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio