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 hold?

Overall Portfolio exposure to Datang Telecom Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Datang Telecom Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Datang Telecom Technology Co., Ltd.

-3.28%

1.80

42.07%

China Shanghai Composite

15.17%

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)

-4.60%

EBIT Growth (5y)

17.68%

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)

1.52

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

421

Industry P/E

Price to Book Value

43.78

EV to EBIT

2112.13

EV to EBITDA

174.27

EV to Capital Employed

28.21

EV to Sales

11.56

PEG Ratio

Dividend Yield

ROCE (Latest)

1.34%

ROE (Latest)

10.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly 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

23What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 85.87 MM has Grown at 819.14%

NET PROFIT(Q)

At CNY 31.59 MM has Grown at 209.94%

ROCE(HY)

Highest at 27.87%

NET SALES(Q)

At CNY 281.86 MM has Grown at 66.16%

RAW MATERIAL COST(Y)

Fallen by -19.63% (YoY

OPERATING PROFIT(Q)

Highest at CNY 91.97 MM

OPERATING PROFIT MARGIN(Q)

Highest at 32.63 %

-8What is not working for the Company

INTEREST(HY)

At CNY 19.41 MM has Grown at 14.02%

DEBT-EQUITY RATIO (HY)

Highest at 262.31 %

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

Pre-Tax Profit

At CNY 85.87 MM has Grown at 819.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 31.59 MM has Grown at 209.94%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 281.86 MM has Grown at 66.16%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 91.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 32.63 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -19.63% (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.

Interest

At CNY 19.41 MM has Grown at 14.02%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 262.31 %

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