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

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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 11.54% and Operating profit at -0.32% 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 11.54% and Operating profit at -0.32% over the last 5 years

INTEREST(Q) At CNY 3.29 MM has Grown at 34.11%
INTEREST COVERAGE RATIO(Q) Lowest at 716.91
RAW MATERIAL COST(Y) Grown by 9.28% (YoY)

With ROE of 7.72%, it has a attractive valuation with a 0.44 Price to Book Value

Over the past year, while the stock has generated a return of 32.28%, its profits have risen by 14.6% ; the PEG ratio of the company is 0.4

Market Beating Performance

The stock has generated a return of 32.28% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

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.

19.92%

1.04

43.75%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.54%

EBIT Growth (5y)

-0.32%

EBIT to Interest (avg)

11.44

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.69

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

0.44

EV to EBIT

6.36

EV to EBITDA

4.82

EV to Capital Employed

0.42

EV to Sales

0.40

PEG Ratio

0.39

Dividend Yield

ROCE (Latest)

6.55%

ROE (Latest)

7.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

6What is working for the Company

NET SALES(HY)

At CNY 862.48 MM has Grown at 19.03%

NET PROFIT(HY)

At CNY 73.48 MM has Grown at 82.31%

ROCE(HY)

Highest at 8.78%

-16What is not working for the Company

INTEREST(Q)

At CNY 3.29 MM has Grown at 34.11%

INTEREST COVERAGE RATIO(Q)

Lowest at 716.91

RAW MATERIAL COST(Y)

Grown by 9.28% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 23.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.01 %

PRE-TAX PROFIT(Q)

Lowest at CNY 28.01 MM

NET PROFIT(Q)

Lowest at CNY 25.42 MM

EPS(Q)

Lowest at CNY 0.2

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

Net Sales

At CNY 862.48 MM has Grown at 19.03%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Zhejiang Guanghua Technology Co., Ltd.

Interest

At CNY 3.29 MM has Grown at 34.11%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 716.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 3.29 MM

in the last five periods and Increased by 34.11% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 23.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 28.01 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 25.42 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.2

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 9.28% (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