Xinjiang Guannong Co., Ltd. (600251) 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

Xinjiang Guannong Co., Ltd.

Why is Xinjiang Guannong Co., Ltd. ?

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 -0.06% and Operating profit at -205.55% 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 11.42% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.06% and Operating profit at -205.55% over the last 5 years

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

RAW MATERIAL COST(Y) Grown by 7.34% (YoY)
NET SALES(Q) Lowest at CNY 295.91 MM
OPERATING PROFIT MARGIN(Q) Lowest at -16.12 %

With ROE of 5.70%, it has a very attractive valuation with a 1.65 Price to Book Value

Over the past year, while the stock has generated a return of 52.68%, its profits have fallen by -67.2%
At the current price, the company has a high dividend yield of 2.2

Market Beating Performance

The stock has generated a return of 52.68% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Xinjiang Guannong Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

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

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

Is Xinjiang Guannong Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Xinjiang Guannong Co., Ltd.

17.25%

1.03

28.07%

China Shanghai Composite

19.22%

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)

-2.77%

EBIT Growth (5y)

-188.34%

EBIT to Interest (avg)

2.23

Debt to EBITDA (avg)

4.25

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.61

Tax Ratio

8.27%

Dividend Payout Ratio

35.68%

Pledged Shares

Institutional Holding

ROCE (avg)

3.96%

ROE (avg)

11.42%

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

1.86

EV to EBIT

-65.50

EV to EBITDA

-439.38

EV to Capital Employed

1.79

EV to Sales

3.27

PEG Ratio

0.10

Dividend Yield

1.86%

ROCE (Latest)

-2.73%

ROE (Latest)

12.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

15What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -18.14% (YoY

NET PROFIT(Q)

Highest at CNY 281.31 MM

EPS(Q)

Highest at CNY 0.38

-23What is not working for the Company

NET SALES(HY)

At CNY 1,013.35 MM has Grown at -39.83%

PRE-TAX PROFIT(Q)

At CNY -1.31 MM has Fallen at -108.61%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.55 times

INTEREST(Q)

Highest at CNY 11.35 MM

Here's what is working for Xinjiang Guannong Co., Ltd.

Net Profit

Highest at CNY 281.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 281.31 MM has Grown at 51.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.38

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -18.14% (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 Xinjiang Guannong Co., Ltd.

Net Sales

At CNY 1,013.35 MM has Grown at -39.83%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -1.31 MM has Fallen at -108.61%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

At CNY 11.35 MM has Grown at 65.07%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 11.35 MM

in the last five periods and Increased by 65.07% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 1.55 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio