Jiangxi Ganneng Co., Ltd. (000899) 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

Jiangxi Ganneng Co., Ltd.

Why is Jiangxi Ganneng Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.36%

The company has been able to generate a Return on Capital Employed (avg) of 3.36% 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 24.58% and Operating profit at 34.84% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 6.10% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 467.44
INTEREST(Q) Highest at CNY 70.94 MM
OPERATING PROFIT(Q) Lowest at CNY 331.58 MM

With ROE of 16.98%, it has a fair valuation with a 1.87 Price to Book Value

Over the past year, while the stock has generated a return of 11.53%, its profits have risen by 62.9% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 2.6

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 Jiangxi Ganneng Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangxi Ganneng Co., Ltd.

-3.13%

-0.07

46.89%

China Shanghai Composite

0.9%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.58%

EBIT Growth (5y)

34.84%

EBIT to Interest (avg)

2.40

Debt to EBITDA (avg)

7.19

Net Debt to Equity (avg)

1.74

Sales to Capital Employed (avg)

0.45

Tax Ratio

10.63%

Dividend Payout Ratio

54.96%

Pledged Shares

Institutional Holding

ROCE (avg)

4.08%

ROE (avg)

6.10%

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

1.45

EV to EBIT

15.06

EV to EBITDA

10.73

EV to Capital Employed

1.17

EV to Sales

2.53

PEG Ratio

0.14

Dividend Yield

5.75%

ROCE (Latest)

7.75%

ROE (Latest)

16.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,586.51 MM

NET SALES(HY)

At CNY 4,084.2 MM has Grown at 34.31%

INVENTORY TURNOVER RATIO(HY)

Highest at 16.82 times

-22What is not working for the Company

INTEREST(HY)

At CNY 136.27 MM has Grown at 49.28%

RAW MATERIAL COST(Y)

Grown by 24.01% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 198.66 %

NET SALES(Q)

At CNY 1,843.66 MM has Fallen at -9.84%

PRE-TAX PROFIT(Q)

At CNY 182.11 MM has Fallen at -35.84%

NET PROFIT(Q)

Lowest at CNY 48.8 MM

EPS(Q)

Lowest at CNY 0.05

Here's what is working for Jiangxi Ganneng Co., Ltd.

Operating Cash Flow

Highest at CNY 2,586.51 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 16.82 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 Jiangxi Ganneng Co., Ltd.

Interest

At CNY 136.27 MM has Grown at 49.28%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 48.8 MM has Fallen at -80.53%

over average net sales of the previous four periods of CNY 250.69 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,843.66 MM has Fallen at -9.84%

over average net sales of the previous four periods of CNY 2,044.81 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 182.11 MM has Fallen at -35.84%

over average net sales of the previous four periods of CNY 283.83 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 48.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 198.66 %

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 24.01% (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

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