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. ?

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

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 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 %

Below par performance in long term as well as near term

Along with generating -3.87% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

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, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Guanghua Technology Co., Ltd.

-3.87%

0.37

37.22%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

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)

11.44

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.67

Tax Ratio

8.46%

Dividend Payout Ratio

39.78%

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

0.38

EV to EBIT

6.95

EV to EBITDA

5.56

EV to Capital Employed

0.40

EV to Sales

0.45

PEG Ratio

Dividend Yield

ROCE (Latest)

5.81%

ROE (Latest)

6.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -15.79 MM

RAW MATERIAL COST(Y)

Fallen by -9.18% (YoY

-21What is not working for the Company

ROCE(HY)

Lowest at 6.6%

INTEREST COVERAGE RATIO(Q)

Lowest at 804.05

DEBT-EQUITY RATIO (HY)

Highest at 3.66 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.54 times

INTEREST(Q)

Highest at CNY 3.37 MM

OPERATING PROFIT(Q)

Lowest at CNY 27.13 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.89 %

PRE-TAX PROFIT(Q)

Lowest at CNY 24.27 MM

NET PROFIT(Q)

Lowest at CNY 21.39 MM

EPS(Q)

Lowest at CNY 0.19

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

Operating Cash Flow

Highest at CNY -15.79 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)

Raw Material Cost

Fallen by -9.18% (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 3.37 MM has Grown at 34.02%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 804.05

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 3.37 MM

in the last five periods and Increased by 34.02% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 27.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 24.27 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 21.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.19

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 3.66 %

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

Debtors Turnover Ratio

Lowest at 1.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio