WG Tech (JiangXi) Co. Ltd. (603773) 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

WG Tech (JiangXi) Co. Ltd.

Why is WG Tech (JiangXi) Co. Ltd. ?

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)

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 34.72% and Operating profit at -269.54% 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

Poor long term growth as Net Sales has grown by an annual rate of 34.72% and Operating profit at -269.54% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

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 56.65%, its profits have fallen by -1109.1%
At the current price, the company has a high dividend yield of 0.1

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 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.

622.36%

1.36

55.66%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.45%

EBIT Growth (5y)

-230.94%

EBIT to Interest (avg)

1.04

Debt to EBITDA (avg)

6.11

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

0.74

Tax Ratio

36.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.50%

ROE (avg)

0.70%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

26.34

EV to EBIT

-284.85

EV to EBITDA

797.57

EV to Capital Employed

12.03

EV to Sales

11.24

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

-4.22%

ROE (Latest)

-15.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

No Trend

Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 243.18 MM

RAW MATERIAL COST(Y)

Fallen by -3.08% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 16.68 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.37 times

-24What is not working for the Company

INTEREST(HY)

At CNY 33.04 MM has Grown at 21.58%

PRE-TAX PROFIT(Q)

At CNY -43.44 MM has Fallen at -62.28%

ROCE(HY)

Lowest at -16.15%

DEBT-EQUITY RATIO (HY)

Highest at 134.19 %

OPERATING PROFIT(Q)

Lowest at CNY -35.87 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -6.04 %

NET PROFIT(Q)

At CNY -51.14 MM has Fallen at -29.14%

Here's what is working for WG Tech (JiangXi) Co. Ltd.

Operating Cash Flow

Highest at CNY 243.18 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 16.68 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.37 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 -3.08% (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.

Interest

At CNY 33.04 MM has Grown at 21.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -43.44 MM has Fallen at -62.28%

over average net sales of the previous four periods of CNY -26.77 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 134.19 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit

Lowest at CNY -35.87 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -6.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY -51.14 MM has Fallen at -29.14%

over average net sales of the previous four periods of CNY -39.6 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)