CMGE Technology Group Ltd. (302) 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

Vesync Co. Ltd.

IGG, Inc.

Mobvista, Inc.

Vobile Group Ltd.

Beisen Holding Ltd.

Ming Yuan Cloud Group Holdings Ltd.

iDreamSky Technology Holdings Ltd.

7Road Holdings Ltd.

Tuya, Inc.

International Business Digital Technology Ltd.

CMGE Technology Group Ltd.

Why is CMGE Technology Group Ltd. ?

Weak Long Term Fundamental Strength with a -231.60% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of -0.53 times

The company has declared Negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at HKD -304.85 MM
OPERATING PROFIT(Q) Lowest at HKD -560.23 MM
OPERATING PROFIT MARGIN(Q) Lowest at -81.62 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -44.71%, its profits have fallen by -318.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -44.71% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

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 Software Products)

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

Is CMGE Technology Group Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

CMGE Technology Group Ltd.

-44.71%

-1.54

52.37%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-15.09%

EBIT Growth (5y)

-231.60%

EBIT to Interest (avg)

0.94

Debt to EBITDA (avg)

1.63

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.48

Tax Ratio

1.50%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.98%

ROE (avg)

3.75%

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

0.26

EV to EBIT

-1.25

EV to EBITDA

-1.40

EV to Capital Employed

0.32

EV to Sales

0.80

PEG Ratio

Dividend Yield

ROCE (Latest)

-25.83%

ROE (Latest)

-33.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

3What is working for the Company

NET PROFIT(HY)

Higher at HKD -497.76 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.22 times

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD -304.85 MM

OPERATING PROFIT(Q)

Lowest at HKD -560.23 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -81.62 %

RAW MATERIAL COST(Y)

Grown by 21.22% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 16.58 %

NET SALES(Q)

Lowest at HKD 686.36 MM

Here's what is working for CMGE Technology Group Ltd.

Net Profit

Higher at HKD -497.76 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (HKD MM)

Debtors Turnover Ratio

Highest at 2.22 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

At HKD 67.61 MM has Grown at 14.93%

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 (HKD MM)

Here's what is not working for CMGE Technology Group Ltd.

Operating Cash Flow

Lowest at HKD -304.85 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 (HKD MM)

Operating Profit

Lowest at HKD -560.23 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at -81.62 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Sales

Lowest at HKD 686.36 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Debt-Equity Ratio

Highest at 16.58 %

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

Raw Material Cost

Grown by 21.22% (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