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Jiangsu Guomao Reducer Co., Ltd.

  • Market Cap: Mid Cap
  • Industry: Industrial Manufacturing
  • ISIN: CNE100003LB4
  • SHG: 603915
CNY
13.29
0.11 (0.83%)

Sep 24

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Jiangsu Guomao Reducer Co., Ltd.

Why is Jiangsu Guomao Reducer Co., Ltd. ?

1
Poor Management Efficiency with a low ROCE of 15.82%
  • The company has been able to generate a Return on Capital Employed (avg) of 15.82% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 1.64% and Operating profit at -11.01% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 11.94% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 1.64% and Operating profit at -11.01% over the last 5 years
4
Flat results in Jun 26
  • OPERATING CASH FLOW(Y) Lowest at CNY 413.07 MM
5
With ROE of 7.00%, it has a fair valuation with a 2.46 Price to Book Value
  • Over the past year, while the stock has generated a return of -23.44%, its profits have risen by 11.4% ; the PEG ratio of the company is 3.1
  • At the current price, the company has a high dividend yield of 1.5
6
Below par performance in long term as well as near term
  • Along with generating -23.44% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Jiangsu Guomao Reducer Co., Ltd. should be less than 10%
  2. Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Jiangsu Guomao Reducer Co., Ltd. for you?

High Risk, Medium Return

Absolute
Risk Adjusted
Volatility
Jiangsu Guomao Reducer Co., Ltd.
-23.84%
-0.02
40.39%
China Shanghai Composite
0.9%
0.22
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
1.64%
EBIT Growth (5y)
-11.01%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.35
Sales to Capital Employed (avg)
0.60
Tax Ratio
12.01%
Dividend Payout Ratio
61.47%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.32%
ROE (avg)
11.94%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
35
Industry P/E
Price to Book Value
2.46
EV to EBIT
33.44
EV to EBITDA
22.01
EV to Capital Employed
3.44
EV to Sales
2.90
PEG Ratio
3.08
Dividend Yield
1.54%
ROCE (Latest)
10.27%
ROE (Latest)
7.00%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company
CASH AND EQV(HY)

Highest at CNY 4,452.5 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.65 times

NET SALES(Q)

Highest at CNY 803.43 MM

NET PROFIT(Q)

Highest at CNY 77.29 MM

EPS(Q)

Highest at CNY 0.13

-3What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at CNY 413.07 MM

Here's what is working for Jiangsu Guomao Reducer Co., Ltd.

Net Sales
Highest at CNY 803.43 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Net Profit
Highest at CNY 77.29 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS
Highest at CNY 0.13
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv
Highest at CNY 4,452.5 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio
Highest at 3.65 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Jiangsu Guomao Reducer Co., Ltd.

Operating Cash Flow
Lowest at CNY 413.07 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)

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