Dongguan Chitwing Technology Co., Ltd. (002855) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Dongguan Chitwing Technology Co., Ltd.

Why is Dongguan Chitwing Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.63%

The company has been able to generate a Return on Capital Employed (avg) of 1.63% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -8.40% and Operating profit at -267.73% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 1.51% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -8.40% and Operating profit at -267.73% over the last 5 years

The company has declared Negative results for the last 10 consecutive quarters

NET PROFIT(HY) At CNY -208.16 MM has Grown at -78.73%
INTEREST(9M) At CNY 19.09 MM has Grown at 15.4%
ROCE(HY) Lowest at -49.12%

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 -34.17%, its profits have fallen by -79.1%

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 Electronics & Appliances)

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

Is Dongguan Chitwing Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dongguan Chitwing Technology Co., Ltd.

-19.05%

-0.24

39.62%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.40%

EBIT Growth (5y)

-267.73%

EBIT to Interest (avg)

-7.77

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

1.27

Tax Ratio

3.77%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.63%

ROE (avg)

1.51%

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

11.17

EV to EBIT

-14.07

EV to EBITDA

-28.42

EV to Capital Employed

5.15

EV to Sales

3.14

PEG Ratio

Dividend Yield

ROCE (Latest)

-36.59%

ROE (Latest)

-96.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

OBV

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

3What is working for the Company

NET PROFIT(HY)

Higher at CNY -208.16 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 6.94%

-19What is not working for the Company

NET PROFIT(HY)

At CNY -208.16 MM has Grown at -78.73%

INTEREST(9M)

At CNY 19.09 MM has Grown at 15.4%

ROCE(HY)

Lowest at -49.12%

RAW MATERIAL COST(Y)

Grown by 90.07% (YoY

CASH AND EQV(HY)

Lowest at CNY 225.81 MM

DEBT-EQUITY RATIO (HY)

Highest at 102.16 %

OPERATING PROFIT(Q)

Lowest at CNY -87.14 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -23.29 %

Here's what is working for Dongguan Chitwing Technology Co., Ltd.

Net Profit

Higher at CNY -208.16 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 6.94%

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 Dongguan Chitwing Technology Co., Ltd.

Net Profit

At CNY -208.16 MM has Grown at -78.73%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 19.09 MM has Grown at 15.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -87.14 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -23.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 225.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 102.16 %

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

Raw Material Cost

Grown by 90.07% (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