AVCON Information Technology Co., Ltd. (300074) 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

AVCON Information Technology Co., Ltd.

Why is AVCON Information Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.04%

The company has been able to generate a Return on Capital Employed (avg) of 0.04% 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 1.36% and Operating profit at -224.76% over the last 5 years

Flat results in Sep 25

NET SALES(Q) At CNY 76.72 MM has Fallen at -46.19%
PRE-TAX PROFIT(Q) At CNY -14.96 MM has Fallen at -154.31%
RAW MATERIAL COST(Y) Grown by 15% (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 -16.42%, its profits have fallen by -1001.3%

Below par performance in long term as well as near term

Along with generating -16.42% 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 IT - Hardware)

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

Is AVCON Information Technology Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

AVCON Information Technology Co., Ltd.

-6.55%

0.66

37.46%

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)

1.36%

EBIT Growth (5y)

-224.76%

EBIT to Interest (avg)

-8.45

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

0.42

Tax Ratio

20.08%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.04%

ROE (avg)

1.08%

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

2.53

EV to EBIT

-30.30

EV to EBITDA

-48.43

EV to Capital Employed

2.77

EV to Sales

4.62

PEG Ratio

Dividend Yield

ROCE (Latest)

-9.15%

ROE (Latest)

-5.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 110.47 MM

NET SALES(9M)

At CNY 234.62 MM has Grown at 18.04%

NET PROFIT(HY)

Higher at CNY -30.54 MM

DEBT-EQUITY RATIO (HY)

Lowest at -14.61 %

DEBTORS TURNOVER RATIO(HY)

Highest at 1.11 times

-10What is not working for the Company

NET SALES(Q)

At CNY 76.72 MM has Fallen at -46.19%

PRE-TAX PROFIT(Q)

At CNY -14.96 MM has Fallen at -154.31%

RAW MATERIAL COST(Y)

Grown by 15% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.11 times

OPERATING PROFIT(Q)

Lowest at CNY -17.61 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -22.95 %

Here's what is working for AVCON Information Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 110.47 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 Profit

Higher at CNY -30.54 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -14.61 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 1.11 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for AVCON Information Technology Co., Ltd.

Net Sales

At CNY 76.72 MM has Fallen at -46.19%

over average net sales of the previous four periods of CNY 142.58 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -14.96 MM has Fallen at -154.31%

over average net sales of the previous four periods of CNY -5.88 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Profit

Lowest at CNY -17.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -22.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 15% (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