China National Software & Service Co., Ltd. (600536) 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 National Software & Service Co., Ltd.

Why is China National Software & Service Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -7.93% and Operating profit at 4.14% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.86% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -7.93% and Operating profit at 4.14% over the last 5 years

Flat results in Jun 26

NET SALES(Q) At CNY 1,082.83 MM has Fallen at -32.38%
INTEREST(Q) At CNY 7.62 MM has Grown at 20.01%

With ROE of 6.57%, it has a risky valuation with a 7.36 Price to Book Value

Over the past year, while the stock has generated a return of -34.68%, its profits have risen by 193.2% ; the PEG ratio of the company is 0.6

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 3.40% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -34.68% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to China National Software & Service Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is China National Software & Service Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

China National Software & Service Co., Ltd.

-35.37%

0.20

42.80%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.93%

EBIT Growth (5y)

4.14%

EBIT to Interest (avg)

-5.75

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.24

Tax Ratio

23.05%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

4.86%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

112

Industry P/E

Price to Book Value

7.36

EV to EBIT

-1191.59

EV to EBITDA

159.20

EV to Capital Employed

17.23

EV to Sales

4.59

PEG Ratio

0.58

Dividend Yield

ROCE (Latest)

-1.45%

ROE (Latest)

6.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

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

17What is working for the Company

NET PROFIT(Q)

At CNY 61.31 MM has Grown at 905.36%

ROCE(HY)

Highest at 0.58%

PRE-TAX PROFIT(Q)

At CNY 106.98 MM has Grown at 199.04%

RAW MATERIAL COST(Y)

Fallen by -42.14% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 11.34 %

-13What is not working for the Company

NET SALES(Q)

At CNY 1,082.83 MM has Fallen at -32.38%

INTEREST(Q)

At CNY 7.62 MM has Grown at 20.01%

Here's what is working for China National Software & Service Co., Ltd.

Net Profit

At CNY 61.31 MM has Grown at 905.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 106.98 MM has Grown at 199.04%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Profit Margin

Highest at 11.34 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -42.14% (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

Depreciation

Highest at CNY 67.99 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CNY MM)

Depreciation

At CNY 67.99 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CNY MM)

Here's what is not working for China National Software & Service Co., Ltd.

Net Sales

At CNY 1,082.83 MM has Fallen at -32.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 7.62 MM has Grown at 20.01%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)