Zhejiang Guanghua Technology Co., Ltd. () 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

Zhejiang Guanghua Technology Co., Ltd.

Why is Zhejiang Guanghua Technology 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 7.69% and Operating profit at 4.01% 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 7.78% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.69% and Operating profit at 4.01% over the last 5 years

INTEREST(HY) At CNY 5.5 MM has Grown at 25.45%
NET SALES(HY) At CNY 797.85 MM has Grown at -10.99%
NET PROFIT(HY) At CNY 51.22 MM has Grown at -25.54%

With ROE of 7.72%, it has a attractive valuation with a 0.45 Price to Book Value

Over the past year, while the stock has generated a return of 13.60%, its profits have risen by 14.6% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Guanghua Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Zhejiang Guanghua Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Guanghua Technology Co., Ltd.

-100.0%

1.02

42.64%

China Shanghai Composite

16.01%

1.03

14.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.69%

EBIT Growth (5y)

4.01%

EBIT to Interest (avg)

11.44

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.68

Tax Ratio

8.46%

Dividend Payout Ratio

31.48%

Pledged Shares

Institutional Holding

ROCE (avg)

7.44%

ROE (avg)

7.78%

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

0.45

EV to EBIT

6.54

EV to EBITDA

4.96

EV to Capital Employed

0.43

EV to Sales

0.41

PEG Ratio

0.40

Dividend Yield

ROCE (Latest)

6.55%

ROE (Latest)

7.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

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 50.9 MM

RAW MATERIAL COST(Y)

Fallen by -13.69% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -4.52 %

INVENTORY TURNOVER RATIO(HY)

Highest at 8.88 times

-15What is not working for the Company

INTEREST(HY)

At CNY 5.5 MM has Grown at 25.45%

NET SALES(HY)

At CNY 797.85 MM has Grown at -10.99%

NET PROFIT(HY)

At CNY 51.22 MM has Grown at -25.54%

INTEREST COVERAGE RATIO(Q)

Lowest at 866.24

OPERATING PROFIT(Q)

Lowest at CNY 24.84 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.04 %

Here's what is working for Zhejiang Guanghua Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 50.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at -4.52 %

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 8.88 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -13.69% (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 Zhejiang Guanghua Technology Co., Ltd.

Interest

At CNY 5.5 MM has Grown at 25.45%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 866.24

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 797.85 MM has Grown at -10.99%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Profit

At CNY 51.22 MM has Grown at -25.54%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 24.84 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