Shenzhen GuoHua Network Security Technology Co., Ltd. (000004) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shenzhen GuoHua Network Security Technology Co., Ltd.

Why is Shenzhen GuoHua Network Security Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.78%

The company has been able to generate a Return on Capital Employed (avg) of 1.78% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 10.68% and Operating profit at -271.78% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 1.57% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.68% and Operating profit at -271.78% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY -37.47 MM
NET SALES(HY) At CNY 40.78 MM has Grown at -9.35%
ROCE(HY) Lowest at -111.71%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -37.47%, its profits have fallen by -6.5%

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 IT - Hardware)

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

Is Shenzhen GuoHua Network Security Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen GuoHua Network Security Technology Co., Ltd.

-40.33%

0.62

58.64%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.68%

EBIT Growth (5y)

-271.78%

EBIT to Interest (avg)

-74.82

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.74

Sales to Capital Employed (avg)

1.05

Tax Ratio

13.78%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.78%

ROE (avg)

1.57%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

38.18

EV to EBIT

-5.01

EV to EBITDA

-5.34

EV to Capital Employed

-73.77

EV to Sales

9.10

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-727.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

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

5What is working for the Company

NET PROFIT(HY)

Higher at CNY -107.4 MM

DEBT-EQUITY RATIO (HY)

Lowest at -62.34 %

DEBTORS TURNOVER RATIO(HY)

Highest at 0.71%

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -37.47 MM

NET SALES(HY)

At CNY 40.78 MM has Grown at -9.35%

ROCE(HY)

Lowest at -111.71%

RAW MATERIAL COST(Y)

Grown by 13.45% (YoY

CASH AND EQV(HY)

Lowest at CNY 114.73 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.84%

Here's what is working for Shenzhen GuoHua Network Security Technology Co., Ltd.

Net Profit

Higher at CNY -107.4 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -62.34 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 0.71%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Shenzhen GuoHua Network Security Technology Co., Ltd.

Net Sales

At CNY 40.78 MM has Grown at -9.35%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY -37.47 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 114.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 4.84%

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 13.45% (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