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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Gushengtang Holdings Ltd. ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

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 Dec 24

DEBT-EQUITY RATIO (HY) Highest at -26.13 %

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 -17.36%, its profits have risen by 31.3% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -17.36% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gushengtang Holdings Ltd.

-17.36%

-0.68

48.25%

Hang Seng Hong Kong

27.36%

1.06

25.88%

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

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

Not enough Data to analyse Financial Trend

Here's what is working for Gushengtang Holdings Ltd.

Net Sales

Highest at HKD 1,797.97 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (HKD MM)

Interest Coverage Ratio

Highest at 3,391.38

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at HKD 332.58 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Pre-Tax Profit

Highest at HKD 257.6 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 215 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 0.9

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Dividend per share

Highest at HKD 13.52

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Dividend Payout Ratio

Highest at 45.61%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at HKD 88.2 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 88.2 MM has Grown at 16.82%

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.

Debt-Equity Ratio

Highest at -26.13 %

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