Asiainfo Security Technologies 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

Asiainfo Security Technologies Co., Ltd.

Why is Asiainfo Security Technologies Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.29%

The company has been able to generate a Return on Capital Employed (avg) of 1.29% 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 51.41% and Operating profit at -0.55% over the last 5 years

Flat results in Sep 25

NET PROFIT(Q) At CNY -43.72 MM has Fallen at -171.78%
INTEREST(Q) At CNY 16.1 MM has Grown at 17.51%
RAW MATERIAL COST(Y) Grown by 9.68% (YoY)

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 -22.10%, its profits have risen by 155.1% ; the PEG ratio of the company is 0.3

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.10% returns

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 Software Products)

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

Is Asiainfo Security Technologies Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Asiainfo Security Technologies Co., Ltd.

-29.16%

1.09

52.15%

China Shanghai Composite

17.07%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

51.41%

EBIT Growth (5y)

-0.55%

EBIT to Interest (avg)

-20.89

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.55

Sales to Capital Employed (avg)

1.05

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.29%

ROE (avg)

1.17%

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

4.41

EV to EBIT

90.66

EV to EBITDA

24.27

EV to Capital Employed

4.13

EV to Sales

1.35

PEG Ratio

0.30

Dividend Yield

ROCE (Latest)

4.56%

ROE (Latest)

9.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 374.08 MM

NET SALES(Q)

At CNY 1,766.71 MM has Grown at 294.64%

NET PROFIT(HY)

Higher at CNY -47.92 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 6.96 times

-22What is not working for the Company

NET PROFIT(Q)

At CNY -43.72 MM has Fallen at -171.78%

INTEREST(Q)

At CNY 16.1 MM has Grown at 17.51%

RAW MATERIAL COST(Y)

Grown by 9.68% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 11.82 %

Here's what is working for Asiainfo Security Technologies Co., Ltd.

Net Sales

At CNY 1,766.71 MM has Grown at 294.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 374.08 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)

Inventory Turnover Ratio

Highest at 6.96 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Asiainfo Security Technologies Co., Ltd.

Net Profit

At CNY -43.72 MM has Fallen at -171.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 16.1 MM has Grown at 17.51%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 11.82 %

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 9.68% (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