New Guomai Digital Culture Co., Ltd. (600640) 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

New Guomai Digital Culture Co., Ltd.

Why is New Guomai Digital Culture Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of -12.34% and Operating profit at 12.48% over the last 5 years

INTEREST(9M) At CNY 1.47 MM has Grown at 56.98%
OPERATING CASH FLOW(Y) Lowest at CNY 195.4 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 72.65 times

Below par performance in long term as well as near term

Along with generating -0.16% 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 Media & Entertainment)

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

Is New Guomai Digital Culture Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

New Guomai Digital Culture Co., Ltd.

-7.23%

0.55

35.05%

China Shanghai Composite

13.33%

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)

-12.34%

EBIT Growth (5y)

12.48%

EBIT to Interest (avg)

-151.54

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.56

Tax Ratio

58.11%

Dividend Payout Ratio

47.12%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.51%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

350

Industry P/E

Price to Book Value

2.85

EV to EBIT

-318.22

EV to EBITDA

135.37

EV to Capital Employed

5.01

EV to Sales

4.56

PEG Ratio

0.83

Dividend Yield

0.06%

ROCE (Latest)

-1.57%

ROE (Latest)

0.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

7What is working for the Company

ROCE(HY)

Highest at 0.54%

RAW MATERIAL COST(Y)

Fallen by -0.59% (YoY

NET PROFIT(Q)

Highest at CNY 17.53 MM

-16What is not working for the Company

INTEREST(9M)

At CNY 1.47 MM has Grown at 56.98%

OPERATING CASH FLOW(Y)

Lowest at CNY 195.4 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 72.65 times

NET SALES(Q)

Lowest at CNY 417.24 MM

OPERATING PROFIT(Q)

Lowest at CNY -0.37 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.09 %

Here's what is working for New Guomai Digital Culture Co., Ltd.

Net Profit

At CNY 17.53 MM has Grown at 138.18%

over average net sales of the previous four periods of CNY 7.36 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Highest at CNY 17.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -0.59% (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 New Guomai Digital Culture Co., Ltd.

Interest

At CNY 1.47 MM has Grown at 56.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 417.24 MM has Fallen at -18.14%

over average net sales of the previous four periods of CNY 509.68 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 195.4 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)

Net Sales

Lowest at CNY 417.24 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -0.37 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.09 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 72.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio