Jiangxi Guoguang Commercial Chains Co., Ltd. (605188) 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 Guoguang Commercial Chains Co., Ltd.

Why is Jiangxi Guoguang Commercial Chains Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 8.53%

The company has been able to generate a Return on Capital Employed (avg) of 8.53% 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 3.32% and Operating profit at -26.80% 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 2.39% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.32% and Operating profit at -26.80% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 149.03 MM
OPERATING PROFIT(Q) Lowest at CNY -5.71 MM
OPERATING PROFIT MARGIN(Q) Lowest at -0.83 %

With ROE of -0.17%, it has a very expensive valuation with a 6.72 Price to Book Value

Over the past year, while the stock has generated a return of 137.74%, its profits have fallen by -116.2%
At the current price, the company has a high dividend yield of 0

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 Retailing)

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

Is Jiangxi Guoguang Commercial Chains Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangxi Guoguang Commercial Chains Co., Ltd.

125.91%

2.06

78.62%

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)

3.32%

EBIT Growth (5y)

-26.80%

EBIT to Interest (avg)

11.02

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

2.15

Tax Ratio

100.00%

Dividend Payout Ratio

185.19%

Pledged Shares

Institutional Holding

ROCE (avg)

8.53%

ROE (avg)

2.39%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

6.72

EV to EBIT

309.59

EV to EBITDA

50.58

EV to Capital Employed

15.27

EV to Sales

2.60

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

4.93%

ROE (Latest)

-0.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -26.08% (YoY

NET PROFIT(9M)

Higher at CNY 7.31 MM

DEBT-EQUITY RATIO (HY)

Lowest at -12.72 %

DEBTORS TURNOVER RATIO(HY)

Highest at 62.12 times

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 149.03 MM

OPERATING PROFIT(Q)

Lowest at CNY -5.71 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.83 %

Here's what is working for Jiangxi Guoguang Commercial Chains Co., Ltd.

Net Profit

At CNY 7.31 MM has Grown at 100.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -12.72 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 62.12 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

Higher at CNY 7.31 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -26.08% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Jiangxi Guoguang Commercial Chains Co., Ltd.

Operating Cash Flow

Lowest at CNY 149.03 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)

Operating Profit

Lowest at CNY -5.71 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.83 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales