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Zhejiang Guanghua Technology Co., Ltd.

  • Market Cap: Micro Cap
  • Industry: Specialty Chemicals
  • ISIN: CNE100005NH2
CNY
20.23
-0.37 (-1.8%)

Sep 24

SHE

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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. ?

1
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 6.48% and Operating profit at -5.88% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 7.78% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 6.48% and Operating profit at -5.88% over the last 5 years
3
The company has declared Negative results for the last 5 consecutive quarters
  • ROCE(HY) Lowest at 6.6%
  • INTEREST COVERAGE RATIO(Q) Lowest at 804.05
  • DEBT-EQUITY RATIO (HY) Highest at 3.66 %
4
Below par performance in long term as well as near term
  • Along with generating -3.39% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

High Risk, Medium Return

Absolute
Risk Adjusted
Volatility
Zhejiang Guanghua Technology Co., Ltd.
-14.28%
0.45
37.69%
China Shanghai Composite
0.9%
1.20
14.07%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
6.48%
EBIT Growth (5y)
-5.88%
EBIT to Interest (avg)
10.92
Debt to EBITDA (avg)
0.12
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
0.67
Tax Ratio
11.08%
Dividend Payout Ratio
39.78%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.03%
ROE (avg)
7.78%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
1.24
EV to EBIT
21.15
EV to EBITDA
16.91
EV to Capital Employed
1.23
EV to Sales
1.38
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
5.81%
ROE (Latest)
6.01%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CNY 61.99 MM

NET SALES(Q)

Highest at CNY 460.97 MM

-18What is not working for the Company
ROCE(HY)

Lowest at 6.27%

RAW MATERIAL COST(Y)

Grown by 6.39% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 1.38 %

OPERATING PROFIT(Q)

Lowest at CNY 26.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.78 %

PRE-TAX PROFIT(Q)

Lowest at CNY 14.35 MM

NET PROFIT(Q)

Lowest at CNY 13.43 MM

EPS(Q)

Lowest at CNY 0.14

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

Operating Cash Flow
Highest at CNY 61.99 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales
Highest at CNY 460.97 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

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

Pre-Tax Profit
At CNY 14.35 MM has Fallen at -43.66%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit
At CNY 13.43 MM has Fallen at -46.26%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit
Lowest at CNY 26.66 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin
Lowest at 5.78 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at CNY 14.35 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 13.43 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS
Lowest at CNY 0.14
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio
Highest at 1.38 %
in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost
Grown by 6.39% (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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