NanJing GOVA Technology Co., Ltd. () 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

NanJing GOVA Technology Co., Ltd.

Why is NanJing GOVA Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 11.64% and Operating profit at -21.44% over the last 5 years

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

INTEREST(HY) At CNY 0.24 MM has Grown at 47.66%
DEBT-EQUITY RATIO (HY) Highest at -48.16 %
RAW MATERIAL COST(Y) Grown by 13.89% (YoY)

With ROE of 3.12%, it has a fair valuation with a 2.88 Price to Book Value

Over the past year, while the stock has generated a return of 58.83%, its profits have fallen by -38.5%

Market Beating Performance

The stock has generated a return of 58.83% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NanJing GOVA Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is NanJing GOVA Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

NanJing GOVA Technology Co., Ltd.

33.95%

0.66

55.67%

China Shanghai Composite

16.01%

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)

11.64%

EBIT Growth (5y)

-21.44%

EBIT to Interest (avg)

47.83

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

0.19

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

66.29%

Pledged Shares

Institutional Holding

ROCE (avg)

1,720.53%

ROE (avg)

2,809.17%

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

2.88

EV to EBIT

115.85

EV to EBITDA

78.41

EV to Capital Employed

4.76

EV to Sales

11.08

PEG Ratio

Dividend Yield

0.28%

ROCE (Latest)

4.11%

ROE (Latest)

3.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 62.87 MM

NET SALES(HY)

At CNY 207.64 MM has Grown at 20.48%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.29 times

PRE-TAX PROFIT(Q)

At CNY 26.34 MM has Grown at 71.49%

NET PROFIT(Q)

At CNY 23.36 MM has Grown at 75.46%

-13What is not working for the Company

INTEREST(HY)

At CNY 0.24 MM has Grown at 47.66%

DEBT-EQUITY RATIO (HY)

Highest at -48.16 %

RAW MATERIAL COST(Y)

Grown by 13.89% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -2.97 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.35 %

Here's what is working for NanJing GOVA Technology Co., Ltd.

Net Sales

At CNY 207.64 MM has Grown at 20.48%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 62.87 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 26.34 MM has Grown at 71.49%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 23.36 MM has Grown at 75.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 1.29 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 NanJing GOVA Technology Co., Ltd.

Interest

At CNY 0.24 MM has Grown at 47.66%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -48.16 % 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

Operating Profit

Lowest at CNY -2.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.35 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 13.89% (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