Jiangsu General Science Technology Co., Ltd. (601500) 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

Jiangsu General Science Technology Co., Ltd.

Why is Jiangsu General Science Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.22%

The company has been able to generate a Return on Capital Employed (avg) of 2.22% signifying low profitability per unit of total capital (equity and debt)

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 20.81% and Operating profit at 16.61% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 2.97% signifying low profitability per unit of shareholders funds
NET PROFIT(HY) At CNY 8.91 MM has Grown at -96.08%
OPERATING CASH FLOW(Y) Lowest at CNY 595.15 MM
INTEREST(HY) At CNY 77.65 MM has Grown at 16.5%

With ROE of 2.45%, it has a very expensive valuation with a 1.17 Price to Book Value

Over the past year, while the stock has generated a return of -16.79%, its profits have fallen by -66.7%

Below par performance in long term as well as near term

Along with generating -16.79% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Auto Components & Equipments)

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

Is Jiangsu General Science Technology Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangsu General Science Technology Co., Ltd.

-22.02%

-0.78

25.93%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.81%

EBIT Growth (5y)

16.61%

EBIT to Interest (avg)

1.53

Debt to EBITDA (avg)

5.35

Net Debt to Equity (avg)

0.78

Sales to Capital Employed (avg)

0.59

Tax Ratio

8.12%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.22%

ROE (avg)

2.97%

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

1.17

EV to EBIT

40.00

EV to EBITDA

13.83

EV to Capital Employed

1.09

EV to Sales

1.54

PEG Ratio

Dividend Yield

ROCE (Latest)

2.74%

ROE (Latest)

2.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

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

5What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.47 times

NET SALES(Q)

Highest at CNY 2,214.35 MM

-25What is not working for the Company

NET PROFIT(HY)

At CNY 8.91 MM has Grown at -96.08%

OPERATING CASH FLOW(Y)

Lowest at CNY 595.15 MM

INTEREST(HY)

At CNY 77.65 MM has Grown at 16.5%

ROCE(HY)

Lowest at 1.73%

DEBT-EQUITY RATIO (HY)

Highest at 81.43 %

RAW MATERIAL COST(Y)

Grown by 22.59% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 85.38 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.86 %

Here's what is working for Jiangsu General Science Technology Co., Ltd.

Inventory Turnover Ratio

Highest at 3.47 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at CNY 2,214.35 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Jiangsu General Science Technology Co., Ltd.

Net Profit

At CNY 8.91 MM has Grown at -96.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 77.65 MM has Grown at 16.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 595.15 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 81.43 % and Grown

In each half year 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

Operating Profit

Lowest at CNY 85.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.86 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 22.59% (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