China Bester Group Telecom Co., Ltd. (603220) 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

China Bester Group Telecom Co., Ltd.

Why is China Bester Group Telecom 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 10.50% and Operating profit at 20.53% 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 7.87% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.50% and Operating profit at 20.53% over the last 5 years

Negative results in Sep 25

NET PROFIT(HY) At CNY 66.23 MM has Grown at -32.44%
INTEREST(HY) At CNY 68.26 MM has Grown at 9.11%
ROCE(HY) Lowest at 4.15%

With ROE of 4.25%, it has a very expensive valuation with a 5.36 Price to Book Value

Over the past year, while the stock has generated a return of -1.69%, its profits have fallen by -54.5%
At the current price, the company has a high dividend yield of 0.4

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -1.69% returns

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 Construction)

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

Is China Bester Group Telecom Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

China Bester Group Telecom Co., Ltd.

-6.13%

0.66

38.66%

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)

10.50%

EBIT Growth (5y)

20.53%

EBIT to Interest (avg)

6.22

Debt to EBITDA (avg)

3.16

Net Debt to Equity (avg)

1.36

Sales to Capital Employed (avg)

0.69

Tax Ratio

9.03%

Dividend Payout Ratio

33.00%

Pledged Shares

Institutional Holding

ROCE (avg)

7.42%

ROE (avg)

7.87%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

126

Industry P/E

Price to Book Value

5.36

EV to EBIT

57.77

EV to EBITDA

23.59

EV to Capital Employed

2.77

EV to Sales

4.59

PEG Ratio

Dividend Yield

0.43%

ROCE (Latest)

4.79%

ROE (Latest)

4.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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 621.98 MM

NET SALES(HY)

At CNY 1,767.7 MM has Grown at 19.74%

INVENTORY TURNOVER RATIO(HY)

Highest at 6.47 times

-20What is not working for the Company

NET PROFIT(HY)

At CNY 66.23 MM has Grown at -32.44%

INTEREST(HY)

At CNY 68.26 MM has Grown at 9.11%

ROCE(HY)

Lowest at 4.15%

DEBT-EQUITY RATIO (HY)

Highest at 179.28 %

INTEREST COVERAGE RATIO(Q)

Lowest at 220.2

OPERATING PROFIT(Q)

Lowest at CNY 72.48 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.89 %

Here's what is working for China Bester Group Telecom Co., Ltd.

Net Sales

At CNY 1,767.7 MM has Grown at 19.74%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 621.98 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 6.47 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 China Bester Group Telecom Co., Ltd.

Interest Coverage Ratio

Lowest at 220.2

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 66.23 MM has Grown at -32.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Interest

At CNY 68.26 MM has Grown at 9.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 179.28 % 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

Operating Profit

Lowest at CNY 72.48 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales