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

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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 45.20% and Operating profit at -278.94% over the last 5 years

With a fall in Net Sales of -59.63%, the company declared Very Negative results in Mar 25

The company has declared negative results in Jan 70 after 2 consecutive negative quarters
INTEREST(HY) At CNY 9.57 MM has Grown at 27.41%
NET SALES(Q) At CNY 93.55 MM has Fallen at -82.04%
NET PROFIT(Q) At CNY -41.93 MM has Fallen at -48.35%

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 217.83%, 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.

217.83%

3.87

60.80%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

45.20%

EBIT Growth (5y)

-278.94%

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)

0.85

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

2.14

EV to EBIT

-6.01

EV to EBITDA

-7.99

EV to Capital Employed

1.75

EV to Sales

1.01

PEG Ratio

Dividend Yield

ROCE (Latest)

-29.09%

ROE (Latest)

-24.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

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

22What is working for the Company

NET SALES(HY)

At CNY 1,118.62 MM has Grown at 495.95%

OPERATING CASH FLOW(Y)

Highest at CNY 168.14 MM

NET PROFIT(HY)

Higher at CNY -2.62 MM

CASH AND EQV(HY)

Highest at CNY 879.68 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.72%

-15What is not working for the Company

INTEREST(HY)

At CNY 9.57 MM has Grown at 27.41%

NET SALES(Q)

At CNY 93.55 MM has Fallen at -82.04%

NET PROFIT(Q)

At CNY -41.93 MM has Fallen at -48.35%

RAW MATERIAL COST(Y)

Grown by 86.6% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 42.33 %

OPERATING PROFIT MARGIN(Q)

Lowest at -69.71 %

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

Operating Cash Flow

Highest at CNY 168.14 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)

Cash and Eqv

Highest at CNY 879.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.72%

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 Guosheng Shian Technology Co. Ltd.

Interest

At CNY 9.57 MM has Grown at 27.41%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 93.55 MM has Fallen at -82.04%

over average net sales of the previous four periods of CNY 520.78 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Profit

At CNY -41.93 MM has Fallen at -48.35%

over average net sales of the previous four periods of CNY -28.27 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 93.55 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at -69.71 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 42.33 %

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

Raw Material Cost

Grown by 86.6% (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