CETC Digital Technology Co. Ltd. (600850) 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

CETC Digital Technology Co. Ltd.

Why is CETC Digital Technology Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.49% and Operating profit at 11.48% over the last 5 years

The company has declared negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY -116.14 MM
ROCE(HY) Lowest at 10.71%
DEBT-EQUITY RATIO (HY) Highest at 19.02 %

With ROE of 10.88%, it has a expensive valuation with a 4.13 Price to Book Value

Over the past year, while the stock has generated a return of 0.66%, its profits have fallen by -2.6%
At the current price, the company has a high dividend yield of 1.1

Underperformed the market in the last 1 year

The stock has generated a return of 0.66% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Computers - Software & Consulting)

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

Is CETC Digital Technology Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

CETC Digital Technology Co. Ltd.

-16.7%

1.16

37.65%

China Shanghai Composite

21.43%

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)

5.21%

EBIT Growth (5y)

-1.81%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

1.84

Tax Ratio

7.67%

Dividend Payout Ratio

45.80%

Pledged Shares

Institutional Holding

ROCE (avg)

41.20%

ROE (avg)

11.87%

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

2.41

EV to EBIT

42.15

EV to EBITDA

29.85

EV to Capital Employed

2.24

EV to Sales

1.16

PEG Ratio

Dividend Yield

2.14%

ROCE (Latest)

5.31%

ROE (Latest)

6.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 101.12 MM

RAW MATERIAL COST(Y)

Fallen by -3.1% (YoY

-27What is not working for the Company

INTEREST(9M)

At CNY 29.57 MM has Grown at 8.32%

ROCE(HY)

Lowest at 6.19%

DEBT-EQUITY RATIO (HY)

Highest at 21 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.81 times

INTEREST COVERAGE RATIO(Q)

Lowest at 405.29

OPERATING PROFIT(Q)

Lowest at CNY 35.9 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.76 %

PRE-TAX PROFIT(Q)

Lowest at CNY 29.7 MM

NET PROFIT(Q)

Lowest at CNY 25.24 MM

EPS(Q)

Lowest at CNY 0.04

Here's what is working for CETC Digital Technology Co. Ltd.

Operating Cash Flow

Highest at CNY 101.12 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -3.1% (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 CETC Digital Technology Co. Ltd.

Interest Coverage Ratio

Lowest at 405.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 29.7 MM has Fallen at -48.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 25.24 MM has Fallen at -49.95%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 21 % and Grown

In each half year 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

Debtors Turnover Ratio

Lowest at 2.81 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

At CNY 29.57 MM has Grown at 8.32%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 35.9 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 29.7 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 25.24 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)