Why is Anhui Sinonet & Xinlong Science & Technology Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.36%
- The company has been able to generate a Return on Capital Employed (avg) of 2.36% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -6.09% and Operating profit at -223.68% over the last 5 years
3
The company has declared Negative results for the last 4 consecutive quarters
- NET PROFIT(HY) At CNY -1,130.95 MM has Grown at -735.72%
- INTEREST(HY) At CNY 30.69 MM has Grown at 70.02%
- NET SALES(HY) At CNY 1,071.59 MM has Grown at -11.32%
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 136.33%, its profits have fallen by -137.6%
5
Market Beating performance in long term as well as near term
- Along with generating 136.33% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Anhui Sinonet & Xinlong Science & Technology Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Anhui Sinonet & Xinlong Science & Technology Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Anhui Sinonet & Xinlong Science & Technology Co., Ltd.
64.93%
2.60
68.71%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-6.09%
EBIT Growth (5y)
-223.68%
EBIT to Interest (avg)
-7.50
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.28
Sales to Capital Employed (avg)
0.48
Tax Ratio
2.82%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.36%
ROE (avg)
2.34%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
3.30
EV to EBIT
-6.51
EV to EBITDA
-7.01
EV to Capital Employed
2.72
EV to Sales
3.75
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-41.78%
ROE (Latest)
-60.79%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
7What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -9.02% (YoY
PRE-TAX PROFIT(Q)
Highest at CNY 63.4 MM
NET PROFIT(Q)
Highest at CNY 42.22 MM
EPS(Q)
Highest at CNY 0.06
-24What is not working for the Company
NET PROFIT(HY)
At CNY -1,130.95 MM has Grown at -735.72%
INTEREST(HY)
At CNY 30.69 MM has Grown at 70.02%
NET SALES(HY)
At CNY 1,071.59 MM has Grown at -11.32%
ROCE(HY)
Lowest at -54.06%
DEBT-EQUITY RATIO
(HY)
Highest at 28.66 %
Here's what is working for Anhui Sinonet & Xinlong Science & Technology Co., Ltd.
Pre-Tax Profit
At CNY 63.4 MM has Grown at 116.24%
over average net sales of the previous four periods of CNY -390.32 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
Highest at CNY 63.4 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 42.22 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Net Profit
At CNY 42.22 MM has Grown at 110.89%
over average net sales of the previous four periods of CNY -387.78 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.06
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Raw Material Cost
Fallen by -9.02% (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 Anhui Sinonet & Xinlong Science & Technology Co., Ltd.
Interest
At CNY 30.69 MM has Grown at 70.02%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Sales
At CNY 1,071.59 MM has Grown at -11.32%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Debt-Equity Ratio
Highest at 28.66 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income
Highest at CNY 0.13 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






