Dongguan Mentech Optical & Magnetic Co., Ltd. (002902) 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 Mentech Optical & Magnetic Co., Ltd.

Why is Dongguan Mentech Optical & Magnetic Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.59%

The company has been able to generate a Return on Capital Employed (avg) of 0.59% 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 3.02% and Operating profit at -319.93% 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 0.98% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.02% and Operating profit at -319.93% over the last 5 years

Flat results in Mar 25

RAW MATERIAL COST(Y) Grown by 12.44% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 67.54 %
NET SALES(Q) At CNY 357.34 MM has Fallen at -11.83%

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 -19.34%, its profits have risen by 14.6%

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 Mentech Optical & Magnetic Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dongguan Mentech Optical & Magnetic Co., Ltd.

-4.99%

0.09

46.37%

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)

3.02%

EBIT Growth (5y)

-319.93%

EBIT to Interest (avg)

-3.88

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

0.97

Tax Ratio

8.74%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.59%

ROE (avg)

0.98%

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

2.95

EV to EBIT

-12.20

EV to EBITDA

-21.63

EV to Capital Employed

2.13

EV to Sales

2.00

PEG Ratio

Dividend Yield

ROCE (Latest)

-17.41%

ROE (Latest)

-34.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

4What is working for the Company

NET PROFIT(HY)

Higher at CNY -196.89 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.68%

-7What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 12.44% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 67.54 %

NET SALES(Q)

At CNY 357.34 MM has Fallen at -11.83%

INTEREST(Q)

Highest at CNY 7.59 MM

Here's what is working for Dongguan Mentech Optical & Magnetic Co., Ltd.

Net Profit

Higher at CNY -196.89 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)

Debtors Turnover Ratio

Highest at 2.68%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Dongguan Mentech Optical & Magnetic Co., Ltd.

Interest

At CNY 7.59 MM has Grown at 43.71%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 357.34 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 357.34 MM has Fallen at -11.83%

over average net sales of the previous four periods of CNY 405.31 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 7.59 MM

in the last five periods and Increased by 43.71% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 67.54 %

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 12.44% (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