Jiangsu Guoxin Corp. Ltd. (002608) 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 Guoxin Corp. Ltd.

Why is Jiangsu Guoxin Corp. Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 9.34% and Operating profit at 5.79% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 6.96% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.34% and Operating profit at 5.79% over the last 5 years

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 283.66
PRE-TAX PROFIT(Q) At CNY 455.57 MM has Fallen at -43.67%
RAW MATERIAL COST(Y) Grown by 23.51% (YoY)

With ROE of 12.55%, it has a expensive valuation with a 1.00 Price to Book Value

Over the past year, while the stock has generated a return of -0.14%, its profits have risen by 5.1% ; the PEG ratio of the company is 1.6

Below par performance in long term as well as near term

Along with generating -0.14% 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 Power)

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

Is Jiangsu Guoxin Corp. Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangsu Guoxin Corp. Ltd.

-5.31%

-0.32

32.59%

China Shanghai Composite

16.78%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.34%

EBIT Growth (5y)

5.79%

EBIT to Interest (avg)

1.45

Debt to EBITDA (avg)

15.95

Net Debt to Equity (avg)

0.68

Sales to Capital Employed (avg)

0.48

Tax Ratio

23.42%

Dividend Payout Ratio

14.17%

Pledged Shares

Institutional Holding

ROCE (avg)

3.84%

ROE (avg)

6.96%

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

1.00

EV to EBIT

15.88

EV to EBITDA

9.99

EV to Capital Employed

1.00

EV to Sales

1.65

PEG Ratio

1.55

Dividend Yield

1.05%

ROCE (Latest)

6.28%

ROE (Latest)

12.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-8What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 283.66

PRE-TAX PROFIT(Q)

At CNY 455.57 MM has Fallen at -43.67%

RAW MATERIAL COST(Y)

Grown by 23.51% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 18.74 times

OPERATING PROFIT(Q)

Lowest at CNY 615.09 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.99 %

Here's what is not working for Jiangsu Guoxin Corp. Ltd.

Interest Coverage Ratio

Lowest at 283.66

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 455.57 MM has Fallen at -43.67%

over average net sales of the previous four periods of CNY 808.73 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Profit

Lowest at CNY 615.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.99 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 18.74 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 23.51% (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