Guosheng Financial Holding Inc. (002670) 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

Guosheng Financial Holding Inc.

Why is Guosheng Financial Holding Inc. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 0.35%

Poor long term growth as Net Sales has grown by an annual rate of 2.80% and Operating profit at 23.12%
The company has been able to generate a Return on Equity (avg) of 0.35% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.80% and Operating profit at 23.12%

Negative results in Mar 26

PRE-TAX PROFIT(Q) At CNY 11.06 MM has Fallen at -87.04%
CASH AND EQV(HY) Lowest at CNY 3,275.61 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 0.28 times

With ROE of 2.41%, it has a very expensive valuation with a 1.63 Price to Book Value

Over the past year, while the stock has generated a return of -29.98%, its profits have risen by 63% ; the PEG ratio of the company is 1.1

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 18.97% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -29.98% returns

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 Capital Markets)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Guosheng Financial Holding Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Guosheng Financial Holding Inc.

-26.91%

0.53

46.55%

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)

2.80%

EBIT Growth (5y)

23.12%

EBIT to Interest (avg)

1.08

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

24.56%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.51%

ROE (avg)

0.35%

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

1.63

EV to EBIT

23.60

EV to EBITDA

20.30

EV to Capital Employed

1.77

EV to Sales

5.97

PEG Ratio

1.07

Dividend Yield

ROCE (Latest)

7.51%

ROE (Latest)

2.41%

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 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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 4,957.23 MM

RAW MATERIAL COST(Y)

Fallen by -5.46% (YoY

-22What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 11.06 MM has Fallen at -87.04%

CASH AND EQV(HY)

Lowest at CNY 3,275.61 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.28 times

NET SALES(Q)

Lowest at CNY 543.38 MM

NET PROFIT(Q)

Lowest at CNY 1.47 MM

EPS(Q)

Lowest at CNY 0

Here's what is working for Guosheng Financial Holding Inc.

Operating Cash Flow

Highest at CNY 4,957.23 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -5.46% (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 Guosheng Financial Holding Inc.

Net Sales

At CNY 543.38 MM has Fallen at -18.31%

over average net sales of the previous four periods of CNY 665.21 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 11.06 MM has Fallen at -87.04%

over average net sales of the previous four periods of CNY 85.37 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1.47 MM has Fallen at -97.85%

over average net sales of the previous four periods of CNY 68.24 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 543.38 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Profit

Lowest at CNY 1.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 3,275.61 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 0.28 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio