Why is Guoguang Electric Co., Ltd. Chengdu ?
1
Poor Management Efficiency with a low ROCE of 13.68%
- The company has been able to generate a Return on Capital Employed (avg) of 13.68% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -4.72% and Operating profit at -174.24% over the last 5 years
3
With a fall in Net Sales of -34.43%, the company declared Very Negative results in Mar 25
- The company has declared negative results for the last 4 consecutive quarters
- NET SALES(Q) At CNY 104.62 MM has Fallen at -33.89%
- PRE-TAX PROFIT(Q) At CNY 2.53 MM has Fallen at -92.53%
- NET PROFIT(Q) At CNY 2.12 MM has Fallen at -92.65%
4
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 68.72%, its profits have fallen by -117.2%
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. Chengdu for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Guoguang Electric Co., Ltd. Chengdu
66.5%
0.72
72.62%
China Shanghai Composite
15.44%
1.01
14.52%
Quality key factors
Factor
Value
Sales Growth (5y)
-4.72%
EBIT Growth (5y)
-174.24%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.19
Sales to Capital Employed (avg)
0.35
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
42.62%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.68%
ROE (avg)
6.33%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
5.52
EV to EBIT
-218.32
EV to EBITDA
-436.94
EV to Capital Employed
9.58
EV to Sales
22.53
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-4.39%
ROE (Latest)
-0.88%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-33What is not working for the Company
NET SALES(Q)
At CNY 104.62 MM has Fallen at -33.89%
PRE-TAX PROFIT(Q)
At CNY 2.53 MM has Fallen at -92.53%
NET PROFIT(Q)
At CNY 2.12 MM has Fallen at -92.65%
ROCE(HY)
Lowest at 1.1%
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.41%
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.55%
RAW MATERIAL COST(Y)
Grown by 25.6% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -19.15 %
Here's what is not working for Guoguang Electric Co., Ltd. Chengdu
Net Sales
At CNY 104.62 MM has Fallen at -33.89%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Pre-Tax Profit
At CNY 2.53 MM has Fallen at -92.53%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 2.12 MM has Fallen at -92.65%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Inventory Turnover Ratio
Lowest at 1.41% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 0.55% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Debt-Equity Ratio
Highest at -19.15 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 25.6% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






