Shenzhen Gongjin Electronics Co., Ltd. (603118) 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

Shenzhen Gongjin Electronics Co., Ltd.

Why is Shenzhen Gongjin Electronics Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.80%

The company has been able to generate a Return on Capital Employed (avg) of 2.80% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -0.75% and Operating profit at -11.50% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.12% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.75% and Operating profit at -11.50% over the last 5 years

Flat results in Jun 26

OPERATING CASH FLOW(Y) Lowest at CNY 180.91 MM
INTEREST(Q) At CNY 8.04 MM has Grown at 17.61%
RAW MATERIAL COST(Y) Grown by 16.98% (YoY)

With ROE of 1.46%, it has a very attractive valuation with a 1.81 Price to Book Value

Over the past year, while the stock has generated a return of 40.75%, its profits have risen by 212.4% ; the PEG ratio of the company is 0.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Gongjin Electronics Co., Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Shenzhen Gongjin Electronics Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Gongjin Electronics Co., Ltd.

37.15%

2.70

68.33%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.75%

EBIT Growth (5y)

-11.50%

EBIT to Interest (avg)

3.56

Debt to EBITDA (avg)

2.52

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.06

Tax Ratio

11.31%

Dividend Payout Ratio

30.36%

Pledged Shares

Institutional Holding

ROCE (avg)

2.04%

ROE (avg)

4.12%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

124

Industry P/E

Price to Book Value

1.81

EV to EBIT

51.94

EV to EBITDA

27.88

EV to Capital Employed

1.77

EV to Sales

1.01

PEG Ratio

0.58

Dividend Yield

ROCE (Latest)

3.41%

ROE (Latest)

1.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

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

ROCE(HY)

Highest at 1.84%

NET SALES(Q)

At CNY 2,641.95 MM has Grown at 25.68%

OPERATING PROFIT(Q)

Highest at CNY 139.07 MM

PRE-TAX PROFIT(Q)

Highest at CNY 47.78 MM

NET PROFIT(Q)

Highest at CNY 46.54 MM

EPS(Q)

Highest at CNY 0.06

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 180.91 MM

INTEREST(Q)

At CNY 8.04 MM has Grown at 17.61%

RAW MATERIAL COST(Y)

Grown by 16.98% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 16.39 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.23 times

Here's what is working for Shenzhen Gongjin Electronics Co., Ltd.

Net Sales

At CNY 2,641.95 MM has Grown at 25.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 139.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 47.78 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 46.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Shenzhen Gongjin Electronics Co., Ltd.

Operating Cash Flow

Lowest at CNY 180.91 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

At CNY 8.04 MM has Grown at 17.61%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 16.39 %

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 4.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 16.98% (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