Anhui Sinonet & Xinlong Science & Technology Co., Ltd. (002298) 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

Anhui Sinonet & Xinlong Science & Technology Co., Ltd.

Why is Anhui Sinonet & Xinlong Science & Technology Co., Ltd. ?

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)

Poor long term growth as Net Sales has grown by an annual rate of -4.21% and Operating profit at -218.50% over the last 5 years

With a growth in Operating Profit of 44.53%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 4 consecutive negative quarters
RAW MATERIAL COST(Y) Fallen by -16.85% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 18.55 %
INVENTORY TURNOVER RATIO(HY) Highest at 2.96 times

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 97.10%, its profits have fallen by -137.6%

Market Beating performance in long term as well as near term

Along with generating 97.10% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

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.

124.06%

2.48

64.85%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.21%

EBIT Growth (5y)

-218.50%

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)

0.51

Tax Ratio

2.82%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.36%

ROE (avg)

2.34%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

4.53

EV to EBIT

-8.70

EV to EBITDA

-9.38

EV to Capital Employed

3.63

EV to Sales

5.02

PEG Ratio

Dividend Yield

ROCE (Latest)

-41.78%

ROE (Latest)

-60.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Bullish

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

18What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -16.85% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 18.55 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.96 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.1 times

NET SALES(Q)

At CNY 581.49 MM has Grown at 16.64%

PRE-TAX PROFIT(Q)

At CNY 18.81 MM has Grown at 106.64%

NET PROFIT(Q)

At CNY 8.71 MM has Grown at 102.91%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Anhui Sinonet & Xinlong Science & Technology Co., Ltd.

Net Sales

At CNY 581.49 MM has Grown at 16.64%

over average net sales of the previous four periods of CNY 498.55 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 18.81 MM has Grown at 106.64%

over average net sales of the previous four periods of CNY -283.3 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 8.71 MM has Grown at 102.91%

over average net sales of the previous four periods of CNY -299.26 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 18.55 %

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 2.96 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -16.85% (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.

Non Operating Income

Highest at CNY 0.25 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income