BOE Technology Group Co., Ltd. (000725) 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

BOE Technology Group Co., Ltd.

Why is BOE Technology Group Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 9.64% and Operating profit at 49.90% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.70% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 130.47
RAW MATERIAL COST(Y) Grown by 9.43% (YoY)
OPERATING PROFIT(Q) Lowest at CNY 1,053.35 MM

With ROE of 3.66%, it has a attractive valuation with a 1.15 Price to Book Value

Over the past year, while the stock has generated a return of -6.64%, its profits have risen by 30.4% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 1.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.64% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to BOE Technology Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is BOE Technology Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

BOE Technology Group Co., Ltd.

-6.18%

-0.20

23.82%

China Shanghai Composite

15.45%

1.03

14.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.64%

EBIT Growth (5y)

49.90%

EBIT to Interest (avg)

1.49

Debt to EBITDA (avg)

1.99

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

0.68

Tax Ratio

16.26%

Dividend Payout Ratio

35.74%

Pledged Shares

Institutional Holding

ROCE (avg)

5.12%

ROE (avg)

6.70%

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

1.15

EV to EBIT

46.00

EV to EBITDA

5.17

EV to Capital Employed

1.09

EV to Sales

1.10

PEG Ratio

1.03

Dividend Yield

1.23%

ROCE (Latest)

2.38%

ROE (Latest)

3.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 53,742.18 MM

ROCE(HY)

Highest at 4.98%

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 130.47

RAW MATERIAL COST(Y)

Grown by 9.43% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 1,053.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.98 %

Here's what is working for BOE Technology Group Co., Ltd.

Operating Cash Flow

Highest at CNY 53,742.18 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)

Here's what is not working for BOE Technology Group Co., Ltd.

Interest Coverage Ratio

Lowest at 130.47

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 1,053.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 9.43% (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