Guosheng Shian Technology Co. Ltd. (603778) 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 Shian Technology Co. Ltd.

Why is Guosheng Shian Technology Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of 38.11% and Operating profit at -253.25% over the last 5 years

The company has declared negative results in Jan 70 after 2 consecutive negative quarters

NET SALES(Q) At CNY 143.34 MM has Fallen at -72.09%
PRE-TAX PROFIT(Q) At CNY -86.59 MM has Fallen at -61.97%
RAW MATERIAL COST(Y) Grown by 1,261.29% (YoY)

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 383.18%, its profits have risen by 22.7%

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 Miscellaneous)

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

Is Guosheng Shian Technology Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guosheng Shian Technology Co. Ltd.

266.07%

4.15

77.74%

China Shanghai Composite

18.87%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.88%

EBIT Growth (5y)

-228.42%

EBIT to Interest (avg)

-44.91

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

1.00

Tax Ratio

3.52%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

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

33.56

EV to EBIT

-13.54

EV to EBITDA

-14.95

EV to Capital Employed

12.90

EV to Sales

12.15

PEG Ratio

Dividend Yield

ROCE (Latest)

-95.21%

ROE (Latest)

-253.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -30.4% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY -58.03 MM

NET PROFIT(Q)

Highest at CNY -34.84 MM

EPS(Q)

Highest at CNY -0.05

-31What is not working for the Company

NET PROFIT(HY)

At CNY -456.95 MM has Grown at -17,311.57%

INTEREST(HY)

At CNY 29.78 MM has Grown at 211.16%

NET SALES(Q)

At CNY 119.56 MM has Fallen at -39.79%

ROCE(HY)

Lowest at -102.09%

DEBT-EQUITY RATIO (HY)

Highest at 174.89 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.46 times

Here's what is working for Guosheng Shian Technology Co. Ltd.

Pre-Tax Profit

Highest at CNY -58.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY -58.03 MM has Grown at 70.15%

over average net sales of the previous four periods of CNY -194.42 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -34.84 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY -34.84 MM has Grown at 75.69%

over average net sales of the previous four periods of CNY -143.29 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -30.4% (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 Shian Technology Co. Ltd.

Interest

At CNY 29.78 MM has Grown at 211.16%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 119.56 MM has Fallen at -39.79%

over average net sales of the previous four periods of CNY 198.57 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 174.89 %

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

Debtors Turnover Ratio

Lowest at 1.46 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio