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

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 5.08% and Operating profit at 15.04% over the last 5 years

Flat results in Mar 26

NET SALES(Q) At CNY 121 MM has Fallen at -17.73%
INTEREST COVERAGE RATIO(Q) Lowest at 6,735.35
ROCE(HY) Lowest at 1.75%

With ROE of 5.46%, it has a expensive valuation with a 1.79 Price to Book Value

Over the past year, while the stock has generated a return of -48.30%, its profits have risen by 96.3% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 1.8

Below par performance in long term as well as near term

Along with generating -48.30% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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, Low Return

Absolute

Risk Adjusted

Volatility

Guomai Technologies, Inc.

-46.75%

0.08

39.51%

China Shanghai Composite

18.87%

1.36

13.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.08%

EBIT Growth (5y)

15.04%

EBIT to Interest (avg)

12.03

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.15

Tax Ratio

23.14%

Dividend Payout Ratio

56.27%

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

1.79

EV to EBIT

45.34

EV to EBITDA

30.58

EV to Capital Employed

1.95

EV to Sales

10.52

PEG Ratio

0.34

Dividend Yield

1.76%

ROCE (Latest)

4.31%

ROE (Latest)

5.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly 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

8What is working for the Company

NET PROFIT(HY)

At CNY 92.27 MM has Grown at 55.81%

INVENTORY TURNOVER RATIO(HY)

Highest at 0.31 times

CASH AND EQV(HY)

Highest at CNY 1,769.45 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.3 times

-9What is not working for the Company

NET SALES(Q)

At CNY 121 MM has Fallen at -17.73%

INTEREST COVERAGE RATIO(Q)

Lowest at 6,735.35

ROCE(HY)

Lowest at 1.75%

RAW MATERIAL COST(Y)

Grown by 8.11% (YoY

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

Net Profit

At CNY 92.27 MM has Grown at 55.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 0.31 times 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

Cash and Eqv

Highest at CNY 1,769.45 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.3 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Net Sales

At CNY 121 MM has Fallen at -17.73%

over average net sales of the previous four periods of CNY 147.09 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 6,735.35 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Raw Material Cost

Grown by 8.11% (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