Datang Telecom Technology Co., Ltd. (600198) 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

Datang Telecom Technology Co., Ltd.

Why is Datang Telecom Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -4.60% and Operating profit at 17.68% over the last 5 years

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

INTEREST(HY) At CNY 19.41 MM has Grown at 14.02%
DEBT-EQUITY RATIO (HY) Highest at 262.31 %

With ROE of 10.39%, it has a very expensive valuation with a 43.78 Price to Book Value

Over the past year, while the stock has generated a return of -0.67%, its profits have fallen by -78.2%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.67% returns

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 Datang Telecom Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Datang Telecom Technology Co., Ltd.

9.4%

1.80

42.07%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.87%

EBIT Growth (5y)

14.04%

EBIT to Interest (avg)

-0.07

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

1.32

Tax Ratio

5.39%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

14.48%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

441

Industry P/E

Price to Book Value

57.44

EV to EBIT

-109.47

EV to EBITDA

-196.10

EV to Capital Employed

13.99

EV to Sales

11.30

PEG Ratio

Dividend Yield

ROCE (Latest)

-12.78%

ROE (Latest)

13.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

No Trend

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 34.66 MM

NET SALES(Q)

At CNY 87.03 MM has Grown at 52.3%

RAW MATERIAL COST(Y)

Fallen by -62.05% (YoY

-14What is not working for the Company

NET PROFIT(HY)

At CNY -73.01 MM has Grown at -263.37%

INTEREST(HY)

At CNY 19.39 MM has Grown at 13.49%

ROCE(HY)

Lowest at -22.18%

DEBT-EQUITY RATIO (HY)

Highest at 345.41 %

Here's what is working for Datang Telecom Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 34.66 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 87.03 MM has Grown at 52.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -62.05% (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 Datang Telecom Technology Co., Ltd.

Net Profit

At CNY -73.01 MM has Grown at -263.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 19.39 MM has Grown at 13.49%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 345.41 %

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