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

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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -12.87% and Operating profit at -232.39% over the last 5 years
The company is Net-Debt Free
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 -12.87% and Operating profit at -232.39% over the last 5 years

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

INTEREST(9M) At CNY 0.21 MM has Grown at inf%
NET SALES(Q) At CNY 22.52 MM has Fallen at -41.92%
ROCE(HY) Lowest at -124.86%

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 -68.42%, its profits have fallen by -6.5%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Shenzhen GuoHua Network Security Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)

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

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

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen GuoHua Network Security Technology Co., Ltd.

-97.05%

-1.22

56.30%

China Shanghai Composite

19.22%

1.99

12.92%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-12.87%

EBIT Growth (5y)

-232.39%

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)

1.18

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

62.50

EV to EBIT

-8.33

EV to EBITDA

-8.87

EV to Capital Employed

-122.67

EV to Sales

15.13

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-727.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

28What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 28.16 MM

NET SALES(HY)

Higher at CNY 142.56 MM

NET PROFIT(HY)

Higher at CNY 27.19 MM

ROCE(HY)

Highest at 16.94%

RAW MATERIAL COST(Y)

Fallen by -82.36% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 1.58 times

PRE-TAX PROFIT(Q)

At CNY -3.42 MM has Grown at 72.89%

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.28 times

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

Net Sales

At CNY 142.56 MM has Grown at 246.84%

Year on Year (YoY)

MOJO Watch

Sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 27.19 MM has Grown at 125.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Higher at CNY 142.56 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

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

Net Sales (CNY MM)

Net Profit

Higher at CNY 27.19 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

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

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 28.16 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY -3.42 MM has Grown at 72.89%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Highest at 1.58 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -82.36% (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 Shenzhen GuoHua Network Security Technology Co., Ltd.

Inventory Turnover Ratio

Lowest at 4.28 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio