Ningbo Gaofa Automotive Control System Co., Ltd. (603788) 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

Ningbo Gaofa Automotive Control System Co., Ltd.

Why is Ningbo Gaofa Automotive Control System Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.95% and Operating profit at 2.60% over the last 5 years

Negative results in Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 4,669.63
RAW MATERIAL COST(Y) Grown by 6.6% (YoY)
CASH AND EQV(HY) Lowest at CNY 1,190.31 MM

With ROE of 9.91%, it has a attractive valuation with a 1.94 Price to Book Value

Over the past year, while the stock has generated a return of 4.93%, its profits have risen by 4.4% ; the PEG ratio of the company is 4.4
At the current price, the company has a high dividend yield of 4.1

Underperformed the market in the last 1 year

The stock has generated a return of 4.93% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Auto Components & Equipments)

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

Is Ningbo Gaofa Automotive Control System Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Ningbo Gaofa Automotive Control System Co., Ltd.

-18.64%

0.72

35.90%

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)

10.95%

EBIT Growth (5y)

2.60%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

0.64

Tax Ratio

10.77%

Dividend Payout Ratio

81.93%

Pledged Shares

Institutional Holding

ROCE (avg)

12.68%

ROE (avg)

7.98%

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

1.94

EV to EBIT

19.19

EV to EBITDA

15.92

EV to Capital Employed

2.15

EV to Sales

2.37

PEG Ratio

4.44

Dividend Yield

4.11%

ROCE (Latest)

11.19%

ROE (Latest)

9.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 242.49 MM

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 4,669.63

RAW MATERIAL COST(Y)

Grown by 6.6% (YoY

CASH AND EQV(HY)

Lowest at CNY 1,190.31 MM

INTEREST(Q)

Highest at CNY 1.06 MM

Here's what is working for Ningbo Gaofa Automotive Control System Co., Ltd.

Operating Cash Flow

Highest at CNY 242.49 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)

Here's what is not working for Ningbo Gaofa Automotive Control System Co., Ltd.

Interest

At CNY 1.06 MM has Grown at 44.17%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 4,669.63

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 1.06 MM

in the last five periods and Increased by 44.17% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 1,190.31 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 6.6% (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