Cre8 Direct (Ningbo) Co., Ltd. (300703) 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

Cre8 Direct (Ningbo) Co., Ltd.

Why is Cre8 Direct (Ningbo) Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 16.75% and Operating profit at 19.50% over the last 5 years

Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 255.48 MM
ROCE(HY) Highest at 14.41%
RAW MATERIAL COST(Y) Fallen by -19.36% (YoY)

With ROE of 16.08%, it has a fair valuation with a 6.38 Price to Book Value

Over the past year, while the stock has generated a return of 24.81%, its profits have risen by 60.8% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 0.3

Market Beating Performance

The stock has generated a return of 24.81% in the last 1 year, much higher than market (China Shanghai Composite) returns of 13.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cre8 Direct (Ningbo) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

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

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

Is Cre8 Direct (Ningbo) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Cre8 Direct (Ningbo) Co., Ltd.

28.56%

1.57

77.48%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.75%

EBIT Growth (5y)

19.50%

EBIT to Interest (avg)

6.48

Debt to EBITDA (avg)

1.11

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

1.28

Tax Ratio

10.92%

Dividend Payout Ratio

25.07%

Pledged Shares

Institutional Holding

ROCE (avg)

8.16%

ROE (avg)

10.14%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.38

EV to EBIT

40.60

EV to EBITDA

27.22

EV to Capital Employed

5.82

EV to Sales

2.81

PEG Ratio

0.65

Dividend Yield

0.30%

ROCE (Latest)

14.34%

ROE (Latest)

16.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 255.48 MM

ROCE(HY)

Highest at 14.41%

RAW MATERIAL COST(Y)

Fallen by -19.36% (YoY

CASH AND EQV(HY)

Highest at CNY 955.1 MM

DEBT-EQUITY RATIO (HY)

Lowest at -3.46 %

NET SALES(Q)

Highest at CNY 605.21 MM

-4What is not working for the Company

INTEREST(Q)

At CNY 2.79 MM has Grown at 12.86%

OPERATING PROFIT(Q)

Lowest at CNY 44.54 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.36 %

Here's what is working for Cre8 Direct (Ningbo) Co., Ltd.

Operating Cash Flow

Highest at CNY 255.48 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 605.21 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 955.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -3.46 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -19.36% (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

Here's what is not working for Cre8 Direct (Ningbo) Co., Ltd.

Interest

At CNY 2.79 MM has Grown at 12.86%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 44.54 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales