Hunan Goke Microelectronics Co., Ltd. (300672) 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

Hunan Goke Microelectronics Co., Ltd.

Why is Hunan Goke Microelectronics Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.95%

The company has been able to generate a Return on Capital Employed (avg) of 1.95% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 25.62% and Operating profit at -238.61% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.08% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 25.62% and Operating profit at -238.61% over the last 5 years

NET PROFIT(Q) At CNY -16.73 MM has Fallen at -182.01%
ROCE(HY) Lowest at 0.85%
INTEREST(Q) At CNY 11.35 MM has Grown at 11.73%

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 240.86%, its profits have risen by 523.4% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 0.3

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 Other Electrical Equipment)

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

Is Hunan Goke Microelectronics Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hunan Goke Microelectronics Co., Ltd.

240.86%

4.43

65.11%

China Shanghai Composite

26.42%

2.04

12.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.62%

EBIT Growth (5y)

-238.61%

EBIT to Interest (avg)

-0.44

Debt to EBITDA (avg)

5.23

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.46

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

66.84%

Pledged Shares

Institutional Holding

ROCE (avg)

1.95%

ROE (avg)

7.08%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

243

Industry P/E

Price to Book Value

5.03

EV to EBIT

-142.22

EV to EBITDA

108.97

EV to Capital Employed

4.54

EV to Sales

11.33

PEG Ratio

0.46

Dividend Yield

0.32%

ROCE (Latest)

-3.19%

ROE (Latest)

2.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 3,536.11 MM

-24What is not working for the Company

NET PROFIT(Q)

At CNY -16.73 MM has Fallen at -182.01%

ROCE(HY)

Lowest at 0.85%

INTEREST(Q)

At CNY 11.35 MM has Grown at 11.73%

OPERATING PROFIT MARGIN(Q)

Lowest at -21.36 %

RAW MATERIAL COST(Y)

Grown by 30.64% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 21.6 %

OPERATING PROFIT(Q)

Lowest at CNY -91.98 MM

PRE-TAX PROFIT(Q)

Lowest at CNY -60.08 MM

Here's what is working for Hunan Goke Microelectronics Co., Ltd.

Cash and Eqv

Highest at CNY 3,536.11 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Hunan Goke Microelectronics Co., Ltd.

Pre-Tax Profit

At CNY -60.08 MM has Fallen at -493.44%

over average net sales of the previous four periods of CNY 15.27 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -16.73 MM has Fallen at -182.01%

over average net sales of the previous four periods of CNY 20.4 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 11.35 MM has Grown at 11.73%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at -21.36 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY -91.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY -60.08 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 21.6 %

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 30.64% (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