CETC Potevio Science & Technology Co., Ltd. (002544) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

CETC Potevio Science & Technology Co., Ltd.

Why is CETC Potevio Science & Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.84%

The company has been able to generate a Return on Capital Employed (avg) of 3.84% 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 -5.63% and Operating profit at -193.58% over the last 5 years

The company has declared positive results in Jan 70 after 8 consecutive negative quarters

DEBT-EQUITY RATIO (HY) Lowest at -4.56 %

With ROE of -1.55%, it has a risky valuation with a 5.13 Price to Book Value

Over the past year, while the stock has generated a return of 15.55%, its profits have fallen by -4924.4%
At the current price, the company has a high dividend yield of 0

Market Beating performance in long term as well as near term

Along with generating 15.55% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CETC Potevio Science & Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is CETC Potevio Science & Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

CETC Potevio Science & Technology Co., Ltd.

40.0%

0.98

40.40%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.63%

EBIT Growth (5y)

-193.58%

EBIT to Interest (avg)

1.79

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.03

Tax Ratio

17.99%

Dividend Payout Ratio

50.61%

Pledged Shares

Institutional Holding

ROCE (avg)

3.84%

ROE (avg)

3.12%

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

5.13

EV to EBIT

-223.16

EV to EBITDA

397.56

EV to Capital Employed

5.58

EV to Sales

4.10

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

-2.50%

ROE (Latest)

-1.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -4.56 %

-29What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -18.86 MM has Fallen at -248.56%

NET PROFIT(Q)

At CNY -16.4 MM has Fallen at -201.78%

OPERATING CASH FLOW(Y)

Lowest at CNY 19.81 MM

ROCE(HY)

Lowest at -0.57%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.8%

NET SALES(Q)

At CNY 867.39 MM has Fallen at -19.68%

RAW MATERIAL COST(Y)

Grown by 11.27% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -23.48 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.71 %

Here's what is working for CETC Potevio Science & Technology Co., Ltd.

Debt-Equity Ratio

Lowest at -4.56 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for CETC Potevio Science & Technology Co., Ltd.

Pre-Tax Profit

At CNY -18.86 MM has Fallen at -248.56%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -16.4 MM has Fallen at -201.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 867.39 MM has Fallen at -19.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 2.8% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at CNY 19.81 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 867.39 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -23.48 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.71 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 11.27% (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