Why is Xinjiang Guannong Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 3.96%
- The company has been able to generate a Return on Capital Employed (avg) of 3.96% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of -2.77% and Operating profit at -188.34% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 11.42% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -2.77% and Operating profit at -188.34% over the last 5 years
4
Flat results in Jun 26
- OPERATING CASH FLOW(Y) Lowest at CNY -107.75 MM
- NET SALES(Q) At CNY 754.9 MM has Fallen at -31.23%
- INTEREST(9M) At CNY 23.07 MM has Grown at 8.19%
5
With ROE of 12.35%, it has a very attractive valuation with a 1.66 Price to Book Value
- Over the past year, while the stock has generated a return of 25.58%, its profits have risen by 144.1% ; the PEG ratio of the company is 0.1
- At the current price, the company has a high dividend yield of 1.2
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?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Xinjiang Guannong Co., Ltd.
21.28%
0.55
41.29%
China Shanghai Composite
0.9%
0.22
14.72%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.77%
EBIT Growth (5y)
-188.34%
EBIT to Interest (avg)
0.30
Debt to EBITDA (avg)
3.24
Net Debt to Equity (avg)
0.14
Sales to Capital Employed (avg)
0.61
Tax Ratio
6.14%
Dividend Payout Ratio
35.68%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.95%
ROE (avg)
11.42%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.66
EV to EBIT
-58.67
EV to EBITDA
-393.57
EV to Capital Employed
1.60
EV to Sales
2.93
PEG Ratio
0.09
Dividend Yield
1.16%
ROCE (Latest)
-2.73%
ROE (Latest)
12.35%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Movement
16What is working for the Company
NET PROFIT(Q)
At CNY 237.57 MM has Grown at 118.96%
NET SALES(Q)
Highest at CNY 754.9 MM
PRE-TAX PROFIT(Q)
Highest at CNY 32.6 MM
-18What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY -107.75 MM
NET SALES(Q)
At CNY 754.9 MM has Fallen at -31.23%
INTEREST(9M)
At CNY 23.07 MM has Grown at 8.19%
RAW MATERIAL COST(Y)
Grown by 24.1% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.76 times
Here's what is working for Xinjiang Guannong Co., Ltd.
Pre-Tax Profit
At CNY 32.6 MM has Grown at 370.95%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 237.57 MM has Grown at 118.96%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Net Sales
Highest at CNY 754.9 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
Highest at CNY 32.6 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Here's what is not working for Xinjiang Guannong Co., Ltd.
Net Sales
At CNY 754.9 MM has Fallen at -31.23%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Operating Cash Flow
Lowest at CNY -107.75 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest
At CNY 23.07 MM has Grown at 8.19%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debtors Turnover Ratio
Lowest at 6.76 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 24.1% (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
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