Weihai Guangwei Composites Co., Ltd. (300699) 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

Weihai Guangwei Composites Co., Ltd.

Why is Weihai Guangwei Composites Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.66% and Operating profit at 2.27% over the last 5 years

The company has declared negative results for the last 10 consecutive quarters

INTEREST(HY) At CNY 18.29 MM has Grown at 170.83%
NET SALES(HY) At CNY 1,095.62 MM has Grown at -13.44%
NET PROFIT(HY) At CNY 280.27 MM has Grown at -31.08%

With ROE of 11.20%, it has a very expensive valuation with a 4.52 Price to Book Value

Over the past year, while the stock has generated a return of -22.03%, its profits have fallen by -23.7%
At the current price, the company has a high dividend yield of 1.7

Below par performance in long term as well as near term

Along with generating -22.03% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Electronics & Appliances)

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

Is Weihai Guangwei Composites Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Weihai Guangwei Composites Co., Ltd.

-11.63%

0.45

31.55%

China Shanghai Composite

15.19%

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)

5.66%

EBIT Growth (5y)

2.27%

EBIT to Interest (avg)

79.47

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.39

Tax Ratio

16.14%

Dividend Payout Ratio

55.71%

Pledged Shares

Institutional Holding

ROCE (avg)

19.42%

ROE (avg)

15.70%

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

4.52

EV to EBIT

38.34

EV to EBITDA

25.37

EV to Capital Employed

4.06

EV to Sales

10.22

PEG Ratio

Dividend Yield

1.71%

ROCE (Latest)

10.59%

ROE (Latest)

11.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,263.61 MM

RAW MATERIAL COST(Y)

Fallen by -5.2% (YoY

-20What is not working for the Company

INTEREST(HY)

At CNY 18.29 MM has Grown at 170.83%

NET SALES(HY)

At CNY 1,095.62 MM has Grown at -13.44%

NET PROFIT(HY)

At CNY 280.27 MM has Grown at -31.08%

ROCE(HY)

Lowest at 13.28%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.21%

OPERATING PROFIT(Q)

Lowest at CNY 163.75 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 29.39 %

Here's what is working for Weihai Guangwei Composites Co., Ltd.

Operating Cash Flow

Highest at CNY 1,263.61 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 (CNY MM)

Raw Material Cost

Fallen by -5.2% (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 Weihai Guangwei Composites Co., Ltd.

Interest

At CNY 18.29 MM has Grown at 170.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 1,095.62 MM has Grown at -13.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Profit

At CNY 280.27 MM has Grown at -31.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 1.21% and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY 163.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 29.39 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales