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.

55.76%

1.03

28.07%

China Shanghai Composite

15.17%

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)

-0.06%

EBIT Growth (5y)

-205.55%

EBIT to Interest (avg)

2.23

Debt to EBITDA (avg)

4.25

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.71

Tax Ratio

8.27%

Dividend Payout Ratio

30.38%

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

1.65

EV to EBIT

-25.72

EV to EBITDA

-69.46

EV to Capital Employed

1.80

EV to Sales

1.71

PEG Ratio

Dividend Yield

2.22%

ROCE (Latest)

-6.99%

ROE (Latest)

5.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

11What is working for the Company

NET PROFIT(Q)

At CNY 61.63 MM has Grown at 768.74%

CASH AND EQV(HY)

Highest at CNY 3,948.53 MM

DEBT-EQUITY RATIO (HY)

Lowest at -16.26 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4 times

DEBTORS TURNOVER RATIO(HY)

Highest at 13.92 times

PRE-TAX PROFIT(Q)

At CNY -26.98 MM has Grown at 69.32%

-14What is not working for the Company

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 %

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

Net Profit

At CNY 61.63 MM has Grown at 768.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

At CNY -26.98 MM has Grown at 69.32%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 3,948.53 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -16.26 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4 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 13.92 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Xinjiang Guannong Co., Ltd.

Net Sales

At CNY 295.91 MM has Fallen at -32.55%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 295.91 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at -16.12 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 7.34% (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