Hubei Guochuang Hi-tech Material Co., Ltd. (002377) 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

Hubei Guochuang Hi-tech Material Co., Ltd.

Why is Hubei Guochuang Hi-tech Material 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

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -27.23% and Operating profit at -171.75% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has reported losses. Due to this company has reported negative ROE

Poor long term growth as Net Sales has grown by an annual rate of -27.23% and Operating profit at -171.75% over the last 5 years

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 23.57%, its profits have risen by 53%

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 Building Products)

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

Is Hubei Guochuang Hi-tech Material Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Hubei Guochuang Hi-tech Material Co., Ltd.

19.08%

2.51

33.85%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-27.23%

EBIT Growth (5y)

-171.75%

EBIT to Interest (avg)

-29.46

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

0.99

Tax Ratio

2.01%

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

5.84

EV to EBIT

-81.83

EV to EBITDA

-126.66

EV to Capital Employed

3.82

EV to Sales

3.83

PEG Ratio

Dividend Yield

ROCE (Latest)

-4.67%

ROE (Latest)

-9.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -27.48 MM

NET PROFIT(HY)

Higher at CNY -28.52 MM

ROCE(HY)

Highest at -8.37%

INVENTORY TURNOVER RATIO(HY)

Highest at 11.86 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.89 times

NET SALES(Q)

Highest at CNY 338.84 MM

-11What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -27.36 MM has Fallen at -146.38%

NET PROFIT(Q)

At CNY -26.5 MM has Fallen at -136.05%

INTEREST(HY)

At CNY 8.29 MM has Grown at 5.32%

RAW MATERIAL COST(Y)

Grown by 47.5% (YoY

Here's what is working for Hubei Guochuang Hi-tech Material Co., Ltd.

Net Sales

At CNY 338.84 MM has Grown at 68.95%

over average net sales of the previous four periods of CNY 200.56 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY -27.48 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 338.84 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 11.86 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.89 times

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 Hubei Guochuang Hi-tech Material Co., Ltd.

Pre-Tax Profit

At CNY -27.36 MM has Fallen at -146.38%

over average net sales of the previous four periods of CNY -11.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -26.5 MM has Fallen at -136.05%

over average net sales of the previous four periods of CNY -11.23 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 8.29 MM has Grown at 5.32%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 47.5% (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