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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Gushengtang Holdings Ltd.

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Zhihu, Inc.

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
The company is Net-Debt Free

Flat results in Dec 25

DEBT-EQUITY RATIO (HY) Highest at -16.64 %
INVENTORY TURNOVER RATIO(HY) Lowest at 12.91 times
INTEREST(Q) Highest at HKD 15.2 MM

With ROE of 209.13%, it has a Very Attractive valuation with a 2.40 Price to Book Value

Over the past year, while the stock has generated a return of -20.59%, its profits have risen by 31.3% ; the PEG ratio of the company is 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.59% 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.

-20.59%

-1.11

32.62%

Hang Seng Hong Kong

8.76%

0.45

19.63%

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)

13.90

Tax Ratio

1.78%

Dividend Payout Ratio

64.52%

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

2.40

EV to EBIT

0.62

EV to EBITDA

0.57

EV to Capital Employed

3.43

EV to Sales

0.16

PEG Ratio

0.04

Dividend Yield

ROCE (Latest)

550.49%

ROE (Latest)

209.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 1,133.55 MM

ROCE(HY)

Highest at 15.49%

NET SALES(Q)

Highest at HKD 1,920.41 MM

OPERATING PROFIT(Q)

Highest at HKD 399.29 MM

OPERATING PROFIT MARGIN(Q)

Highest at 20.79 %

PRE-TAX PROFIT(Q)

Highest at HKD 266.48 MM

NET PROFIT(Q)

Highest at HKD 219.31 MM

EPS(Q)

Highest at HKD 0.92

-6What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -16.64 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 12.91 times

INTEREST(Q)

Highest at HKD 15.2 MM

Here's what is working for Gushengtang Holdings Ltd.

Operating Cash Flow

Highest at HKD 1,133.55 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 (HKD MM)

Net Sales

Highest at HKD 1,920.41 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Operating Profit

Highest at HKD 399.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Operating Profit Margin

Highest at 20.79 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at HKD 266.48 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 219.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 0.92

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Depreciation

Highest at HKD 112.91 MM

in the last five periods

MOJO Watch

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

Depreciation (HKD MM)

Depreciation

At HKD 112.91 MM has Grown at 24.25%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

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

Interest

Highest at HKD 15.2 MM

in the last five periods and Increased by 15.31% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Debt-Equity Ratio

Highest at -16.64 %

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

Inventory Turnover Ratio

Lowest at 12.91 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio