Jiangxi Guotai Group Co., Ltd. (603977) 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 Guotai Group Co., Ltd.

Why is Jiangxi Guotai Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.42% and Operating profit at -0.56% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 114.11 MM
ROCE(HY) Lowest at 4.61%
DEBT-EQUITY RATIO (HY) Highest at 33.03 %

With ROE of 5.69%, it has a expensive valuation with a 2.38 Price to Book Value

Over the past year, while the stock has generated a return of 19.34%, its profits have fallen by -47.2%
At the current price, the company has a high dividend yield of 0.7

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 Other Industrial Products)

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

Is Jiangxi Guotai Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangxi Guotai Group Co., Ltd.

20.83%

0.99

44.65%

China Shanghai Composite

24.02%

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)

8.42%

EBIT Growth (5y)

-0.56%

EBIT to Interest (avg)

13.63

Debt to EBITDA (avg)

0.75

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.52

Tax Ratio

18.78%

Dividend Payout Ratio

32.02%

Pledged Shares

Institutional Holding

ROCE (avg)

8.96%

ROE (avg)

9.71%

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

2.64

EV to EBIT

55.92

EV to EBITDA

35.05

EV to Capital Employed

2.23

EV to Sales

4.42

PEG Ratio

Dividend Yield

0.63%

ROCE (Latest)

3.99%

ROE (Latest)

4.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

9What is working for the Company

NET PROFIT(HY)

At CNY 101.93 MM has Grown at 1,820.52%

RAW MATERIAL COST(Y)

Fallen by -3.92% (YoY

-22What is not working for the Company

INTEREST(HY)

At CNY 8.36 MM has Grown at 76.34%

OPERATING CASH FLOW(Y)

Lowest at CNY 14.51 MM

DEBT-EQUITY RATIO (HY)

Highest at 35.6 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.68 times

INTEREST COVERAGE RATIO(Q)

Lowest at 1,070.25

OPERATING PROFIT(Q)

Lowest at CNY 42.01 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.42 %

PRE-TAX PROFIT(Q)

Lowest at CNY 46.23 MM

NET PROFIT(Q)

Lowest at CNY 39.93 MM

EPS(Q)

Lowest at CNY 0.06

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

Raw Material Cost

Fallen by -3.92% (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 Guotai Group Co., Ltd.

Interest

At CNY 8.36 MM has Grown at 76.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 14.51 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)

Interest Coverage Ratio

Lowest at 1,070.25

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 35.6 % 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

Inventory Turnover Ratio

Lowest at 3.68 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at CNY 42.01 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.42 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 46.23 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 39.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)