Guomai Technologies, Inc. (002093) 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

Guomai Technologies, Inc.

Why is Guomai Technologies, Inc. ?

Poor Management Efficiency with a low ROCE of 2.67%

The company has been able to generate a Return on Capital Employed (avg) of 2.67% 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 4.36% and Operating profit at 21.91% over the last 5 years

OPERATING CASH FLOW(Y) Highest at CNY 249.39 MM
ROCE(HY) Highest at 5.48%
INVENTORY TURNOVER RATIO(HY) Highest at 0.28%

With ROE of 4.45%, it has a attractive valuation with a 2.93 Price to Book Value

Over the past year, while the stock has generated a return of 48.59%, its profits have risen by 52.8% ; the PEG ratio of the company is 1.3
At the current price, the company has a high dividend yield of 1.1

Market Beating Performance

The stock has generated a return of 48.59% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guomai Technologies, Inc. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Guomai Technologies, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guomai Technologies, Inc.

43.84%

1.86

53.64%

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)

4.36%

EBIT Growth (5y)

21.91%

EBIT to Interest (avg)

12.03

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.14

Tax Ratio

23.14%

Dividend Payout Ratio

59.00%

Pledged Shares

Institutional Holding

ROCE (avg)

2.67%

ROE (avg)

2.90%

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

2.92

EV to EBIT

90.17

EV to EBITDA

53.02

EV to Capital Employed

3.34

EV to Sales

17.98

PEG Ratio

1.25

Dividend Yield

1.11%

ROCE (Latest)

3.71%

ROE (Latest)

4.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 249.39 MM

ROCE(HY)

Highest at 5.48%

INVENTORY TURNOVER RATIO(HY)

Highest at 0.28%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

PRE-TAX PROFIT(Q)

At CNY 58.19 MM has Grown at 105.39%

NET PROFIT(Q)

At CNY 50.12 MM has Grown at 84.19%

EPS(Q)

Highest at CNY 0.09

-4What is not working for the Company

NET SALES(Q)

At CNY 116.56 MM has Fallen at -14.2%

RAW MATERIAL COST(Y)

Grown by 5.58% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.9%

Here's what is working for Guomai Technologies, Inc.

Inventory Turnover Ratio

Highest at 0.28% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at CNY 249.39 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 58.19 MM has Grown at 105.39%

over average net sales of the previous four periods of CNY 28.33 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 50.12 MM has Grown at 84.19%

over average net sales of the previous four periods of CNY 27.21 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.09

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Guomai Technologies, Inc.

Net Sales

At CNY 116.56 MM has Fallen at -14.2%

over average net sales of the previous four periods of CNY 135.84 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 1.9%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 5.58% (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