Contec Medical Systems Co. Ltd. (300869) 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

Contec Medical Systems Co. Ltd.

Why is Contec Medical Systems Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -21.07% and Operating profit at -161.63% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 86.99 MM
NET PROFIT(Q) At CNY -10.58 MM has Fallen at -63.83%
PRE-TAX PROFIT(Q) At CNY -11.05 MM has Fallen at -54.16%

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 -13.89%, its profits have risen by 26.6%
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.89% returns in the last 1 year, the stock has also underperformed China Shanghai Composite 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 Pharmaceuticals & Biotechnology)

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

Is Contec Medical Systems Co. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Contec Medical Systems Co. Ltd.

-14.28%

-0.51

37.03%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-21.07%

EBIT Growth (5y)

-161.63%

EBIT to Interest (avg)

80.13

Debt to EBITDA (avg)

0.38

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

0.18

Tax Ratio

9.95%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.98%

ROE (avg)

13.70%

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

0.95

EV to EBIT

-13.48

EV to EBITDA

-19.47

EV to Capital Employed

0.91

EV to Sales

1.80

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.73%

ROE (Latest)

-2.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Bearish

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

9What is working for the Company

NET PROFIT(HY)

Higher at CNY -42.84 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.01 times

DEBTORS TURNOVER RATIO(HY)

Highest at 8.65 times

CASH AND EQV(HY)

Highest at CNY 3,845.26 MM

DEBT-EQUITY RATIO (HY)

Lowest at -47.47 %

-21What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 86.99 MM

NET PROFIT(Q)

At CNY -10.58 MM has Fallen at -63.83%

PRE-TAX PROFIT(Q)

At CNY -11.05 MM has Fallen at -54.16%

RAW MATERIAL COST(Y)

Grown by 7.27% (YoY

NET SALES(Q)

Lowest at CNY 100.28 MM

INTEREST(Q)

Highest at CNY 11.55 MM

Here's what is working for Contec Medical Systems Co. Ltd.

Inventory Turnover Ratio

Highest at 1.01 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 8.65 times and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Cash and Eqv

Highest at CNY 3,845.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -47.47 %

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 Contec Medical Systems Co. Ltd.

Net Profit

At CNY -10.58 MM has Fallen at -63.83%

over average net sales of the previous four periods of CNY -6.46 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 86.99 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)

Net Sales

At CNY 100.28 MM has Fallen at -14.29%

over average net sales of the previous four periods of CNY 117 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 11.55 MM has Grown at 83.26%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -11.05 MM has Fallen at -54.16%

over average net sales of the previous four periods of CNY -7.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Sales

Lowest at CNY 100.28 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 11.55 MM

in the last five periods and Increased by 83.26% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 7.27% (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