Gushengtang Holdings Ltd. () 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

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Dingdang Health Technology Group Ltd.

Why is Gushengtang Holdings Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 0%

Poor long term growth as Net Sales has grown by an annual rate of 1.91% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Jun 25

INTEREST(HY) At HKD 13.18 MM has Grown at 41.88%
INVENTORY TURNOVER RATIO(HY) Lowest at 13.36 times

With ROE of 215.54%, it has a Very Attractive valuation with a 3.09 Price to Book Value

Over the past year, while the stock has generated a return of -13.97%, its profits have risen by 31.3% ; the PEG ratio of the company is 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.97% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gushengtang Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

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

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

Is Gushengtang Holdings Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gushengtang Holdings Ltd.

-100.0%

-1.00

35.39%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.91%

EBIT Growth (5y)

9.03%

EBIT to Interest (avg)

5.04

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

16.20

Tax Ratio

1.78%

Dividend Payout Ratio

39.45%

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

Industry P/E

Price to Book Value

3.09

EV to EBIT

0.82

EV to EBITDA

0.76

EV to Capital Employed

4.47

EV to Sales

0.22

PEG Ratio

0.05

Dividend Yield

ROCE (Latest)

545.74%

ROE (Latest)

215.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

5What is working for the Company

ROCE(HY)

Highest at 14.86%

DIVIDEND PAYOUT RATIO(Y)

Highest at 51.61%

RAW MATERIAL COST(Y)

Fallen by -10.66% (YoY

DIVIDEND PER SHARE(HY)

Highest at HKD 15.16

-4What is not working for the Company

INTEREST(HY)

At HKD 13.18 MM has Grown at 41.88%

INVENTORY TURNOVER RATIO(HY)

Lowest at 13.36 times

Here's what is working for Gushengtang Holdings Ltd.

Dividend per share

Highest at HKD 15.16

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Dividend Payout Ratio

Highest at 51.61%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -10.66% (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

Depreciation

Highest at HKD 90.88 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Here's what is not working for Gushengtang Holdings Ltd.

Interest

At HKD 13.18 MM has Grown at 41.88%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Inventory Turnover Ratio

Lowest at 13.36 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio