Why is WG Tech (JiangXi) Co. Ltd. ?
1
Poor Management Efficiency with a low ROCE of 0.50%
- The company has been able to generate a Return on Capital Employed (avg) of 0.50% signifying low profitability per unit of total capital (equity and debt)
2
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 34.81% and Operating profit at -244.33% 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 0.70% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 34.81% and Operating profit at -244.33% over the last 5 years
4
The company has declared Negative results for the last 4 consecutive quarters
- NET PROFIT(HY) At CNY -97.04 MM has Grown at -3,104.97%
- INTEREST(HY) At CNY 27.18 MM has Grown at 23.37%
- DEBT-EQUITY RATIO (HY) Highest at 85.9 %
5
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 19.75%, its profits have fallen by -1109.1%
- At the current price, the company has a high dividend yield of 0.1
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 Furniture, Home Furnishing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is WG Tech (JiangXi) Co. Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
WG Tech (JiangXi) Co. Ltd.
-100.0%
0.94
50.52%
China Shanghai Composite
15.19%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
34.81%
EBIT Growth (5y)
-244.33%
EBIT to Interest (avg)
1.04
Debt to EBITDA (avg)
6.11
Net Debt to Equity (avg)
0.82
Sales to Capital Employed (avg)
0.66
Tax Ratio
36.72%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.50%
ROE (avg)
0.70%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
5.86
EV to EBIT
-190.80
EV to EBITDA
68.05
EV to Capital Employed
3.36
EV to Sales
3.41
PEG Ratio
NA
Dividend Yield
0.12%
ROCE (Latest)
-1.76%
ROE (Latest)
-10.28%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Sideways
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -22.62% (YoY
CASH AND EQV(HY)
Highest at CNY 1,666.63 MM
-20What is not working for the Company
NET PROFIT(HY)
At CNY -97.04 MM has Grown at -3,104.97%
INTEREST(HY)
At CNY 27.18 MM has Grown at 23.37%
DEBT-EQUITY RATIO
(HY)
Highest at 85.9 %
OPERATING PROFIT(Q)
Lowest at CNY -8.99 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -1.66 %
Here's what is working for WG Tech (JiangXi) Co. Ltd.
Cash and Eqv
Highest at CNY 1,666.63 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -22.62% (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 WG Tech (JiangXi) Co. Ltd.
Net Profit
At CNY -97.04 MM has Grown at -3,104.97%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest
At CNY 27.18 MM has Grown at 23.37%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit
Lowest at CNY -8.99 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at -1.66 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debt-Equity Ratio
Highest at 85.9 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






