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 -25.86%, 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 -25.86% 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.

-31.21%

-0.63

38.10%

China Shanghai Composite

3.23%

1.20

14.07%

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)

0.14

Debt to EBITDA (avg)

0.38

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

0.18

Tax Ratio

6.91%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.80%

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

2.40

EV to EBIT

-54.52

EV to EBITDA

-78.75

EV to Capital Employed

3.67

EV to Sales

7.27

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.73%

ROE (Latest)

-2.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly 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

4What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -63.07 %

CASH AND EQV(HY)

Highest at CNY 3,728.86 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.17 times

-23What is not working for the Company

ROCE(HY)

Lowest at -5.24%

RAW MATERIAL COST(Y)

Grown by 27.76% (YoY

INTEREST(Q)

Highest at CNY 13.32 MM

PRE-TAX PROFIT(Q)

Lowest at CNY -41.9 MM

NET PROFIT(Q)

Lowest at CNY -41.02 MM

EPS(Q)

Lowest at CNY -0.1

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

Debt-Equity Ratio

Lowest at -63.07 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at CNY 3,728.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 1.17 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 Contec Medical Systems Co. Ltd.

Pre-Tax Profit

At CNY -41.9 MM has Fallen at -207.25%

over average net sales of the previous four periods of CNY -13.64 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -41.02 MM has Fallen at -224.12%

over average net sales of the previous four periods of CNY -12.66 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 13.32 MM has Grown at 15.32%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 13.32 MM

in the last five periods and Increased by 15.32% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

Lowest at CNY -41.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -41.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 27.76% (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