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.

-11.3%

1.16

37.65%

China Shanghai Composite

13.33%

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)

7.49%

EBIT Growth (5y)

11.48%

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)

1.96

Tax Ratio

7.67%

Dividend Payout Ratio

43.74%

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

4.13

EV to EBIT

38.34

EV to EBITDA

29.42

EV to Capital Employed

3.99

EV to Sales

1.79

PEG Ratio

Dividend Yield

1.09%

ROCE (Latest)

10.41%

ROE (Latest)

10.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.5 times

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -116.14 MM

ROCE(HY)

Lowest at 10.71%

DEBT-EQUITY RATIO (HY)

Highest at 19.02 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.07 times

INTEREST(Q)

At CNY 9.86 MM has Grown at 11.32%

RAW MATERIAL COST(Y)

Grown by 11.5% (YoY

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

Inventory Turnover Ratio

Highest at 2.5 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 CETC Digital Technology Co. Ltd.

Operating Cash Flow

Lowest at CNY -116.14 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 9.86 MM has Grown at 11.32%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 19.02 % 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 3.07 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

Raw Material Cost

Grown by 11.5% (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