Western Region Gold Co., Ltd. (601069) 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

Western Region Gold Co., Ltd.

Why is Western Region Gold Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 11.99%

The company has been able to generate a Return on Capital Employed (avg) of 11.99% signifying low profitability per unit of total capital (equity and debt)

Positive results in Mar 25

NET SALES(HY) At CNY 3,860.75 MM has Grown at 46.3%
NET PROFIT(HY) Higher at CNY 187.06 MM
ROCE(HY) Highest at 6.43%

With ROE of 7.93%, it has a expensive valuation with a 4.19 Price to Book Value

Over the past year, while the stock has generated a return of 105.66%, its profits have risen by 432.5% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.2

Market Beating Performance

The stock has generated a return of 105.66% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Western Region Gold Co., Ltd. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

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

Is Western Region Gold Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Western Region Gold Co., Ltd.

111.9%

1.84

57.75%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.61%

EBIT Growth (5y)

31.57%

EBIT to Interest (avg)

14.27

Debt to EBITDA (avg)

0.11

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.99

Tax Ratio

20.74%

Dividend Payout Ratio

15.85%

Pledged Shares

Institutional Holding

ROCE (avg)

11.99%

ROE (avg)

3.34%

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

4.19

EV to EBIT

42.80

EV to EBITDA

23.50

EV to Capital Employed

3.36

EV to Sales

2.40

PEG Ratio

0.12

Dividend Yield

0.16%

ROCE (Latest)

7.84%

ROE (Latest)

7.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

22What is working for the Company

NET SALES(HY)

At CNY 3,860.75 MM has Grown at 46.3%

NET PROFIT(HY)

Higher at CNY 187.06 MM

ROCE(HY)

Highest at 6.43%

CASH AND EQV(HY)

Highest at CNY 2,131 MM

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -27.43 MM

INTEREST(Q)

At CNY 12.44 MM has Grown at 42.14%

INTEREST COVERAGE RATIO(Q)

Lowest at 495.41

NET PROFIT(Q)

At CNY 42.49 MM has Fallen at -43.64%

RAW MATERIAL COST(Y)

Grown by 40.38% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 61.63 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.2 %

PRE-TAX PROFIT(Q)

Lowest at CNY 52.54 MM

Here's what is working for Western Region Gold Co., Ltd.

Net Sales

At CNY 3,860.75 MM has Grown at 46.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 2,131 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Western Region Gold Co., Ltd.

Interest

At CNY 12.44 MM has Grown at 42.14%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 495.41

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 52.54 MM has Fallen at -46.96%

over average net sales of the previous four periods of CNY 99.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 42.49 MM has Fallen at -43.64%

over average net sales of the previous four periods of CNY 75.39 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -27.43 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 61.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.2 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 52.54 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 40.38% (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