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 hold?

Overall Portfolio exposure to Ningbo Gaofa Automotive Control System Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

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.

-4.19%

0.72

35.90%

China Shanghai Composite

23.91%

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)

10.72%

EBIT Growth (5y)

5.46%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

0.67

Tax Ratio

10.77%

Dividend Payout Ratio

82.54%

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

1.58

EV to EBIT

14.09

EV to EBITDA

12.21

EV to Capital Employed

1.71

EV to Sales

1.96

PEG Ratio

1.44

Dividend Yield

10.02%

ROCE (Latest)

12.15%

ROE (Latest)

9.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -19.88% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.56 times

-6What is not working for the Company

INTEREST(9M)

At CNY 1.27 MM has Grown at 125.61%

OPERATING PROFIT(Q)

Lowest at CNY 49.82 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.65 %

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

Inventory Turnover Ratio

Highest at 6.56 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -19.88% (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 Ningbo Gaofa Automotive Control System Co., Ltd.

Interest

At CNY 1.27 MM has Grown at 125.61%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 49.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 13.65 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales