Taste Gourmet Group Ltd. (8371) 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

Taste Gourmet Group Ltd.

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Why is Taste Gourmet Group Ltd. ?

High Management Efficiency with a high ROE of 27.50%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 5.10

Healthy long term growth as Net Sales has grown by an annual rate of 29.89%

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at HKD 702.68 MM
DEBT-EQUITY RATIO (HY) Lowest at 59.32 %
NET SALES(Q) Highest at HKD 655.62 MM

With ROE of 36.49%, it has a Very Attractive valuation with a 2.60 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 14.29%, its profits have risen by 10.7% ; the PEG ratio of the company is 0.7

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Taste Gourmet Group Ltd. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

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

Is Taste Gourmet Group Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Taste Gourmet Group Ltd.

14.29%

0.42

35.83%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.89%

EBIT Growth (5y)

63.94%

EBIT to Interest (avg)

5.10

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

2.49

Tax Ratio

16.19%

Dividend Payout Ratio

55.62%

Pledged Shares

Institutional Holding

ROCE (avg)

33.69%

ROE (avg)

27.50%

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

2.60

EV to EBIT

5.30

EV to EBITDA

1.96

EV to Capital Employed

2.79

EV to Sales

0.56

PEG Ratio

0.68

Dividend Yield

ROCE (Latest)

52.59%

ROE (Latest)

36.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 702.68 MM

DEBT-EQUITY RATIO (HY)

Lowest at 59.32 %

NET SALES(Q)

Highest at HKD 655.62 MM

CASH AND EQV(HY)

Highest at HKD 242.44 MM

DIVIDEND PER SHARE(HY)

Highest at HKD 42.07

EPS(Q)

Highest at HKD 0.14

-4What is not working for the Company

ROCE(HY)

Lowest at 37.48%

RAW MATERIAL COST(Y)

Grown by 9.63% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 27.52 %

Here's what is working for Taste Gourmet Group Ltd.

Operating Cash Flow

Highest at HKD 702.68 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 (HKD MM)

Net Sales

Highest at HKD 655.62 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (HKD MM)

Debt-Equity Ratio

Lowest at 59.32 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

EPS

Highest at HKD 0.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Cash and Eqv

Highest at HKD 242.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at HKD 42.07

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Depreciation

Highest at HKD 116.3 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Here's what is not working for Taste Gourmet Group Ltd.

Operating Profit Margin

Lowest at 27.52 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 9.63% (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

Non Operating Income

Highest at HKD 0.12 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income