Dongguan YuTong Optical Technology Co., Ltd. (300790) 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

Dongguan YuTong Optical Technology Co., Ltd.

Why is Dongguan YuTong Optical Technology Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 16.25% and Operating profit at 11.25% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 8.50% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 16.25% and Operating profit at 11.25% over the last 5 years

Positive results in Mar 26

NET SALES(HY) At CNY 1,838.87 MM has Grown at 34.71%
NET PROFIT(HY) At CNY 114.93 MM has Grown at 62.95%
INVENTORY TURNOVER RATIO(HY) Highest at 3.75 times

With ROE of 9.35%, it has a fair valuation with a 2.74 Price to Book Value

Over the past year, while the stock has generated a return of 92.06%, its profits have risen by 52.3% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0.8

Market Beating performance in long term as well as near term

Along with generating 92.06% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dongguan YuTong Optical Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Dongguan YuTong Optical Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Dongguan YuTong Optical Technology Co., Ltd.

82.26%

1.72

61.01%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.25%

EBIT Growth (5y)

11.25%

EBIT to Interest (avg)

5.52

Debt to EBITDA (avg)

3.04

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

0.63

Tax Ratio

3.72%

Dividend Payout Ratio

16.29%

Pledged Shares

Institutional Holding

ROCE (avg)

6.61%

ROE (avg)

8.50%

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

2.74

EV to EBIT

26.49

EV to EBITDA

16.45

EV to Capital Employed

2.05

EV to Sales

2.58

PEG Ratio

0.56

Dividend Yield

0.81%

ROCE (Latest)

7.73%

ROE (Latest)

9.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

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

13What is working for the Company

NET SALES(HY)

At CNY 1,838.87 MM has Grown at 34.71%

NET PROFIT(HY)

At CNY 114.93 MM has Grown at 62.95%

INVENTORY TURNOVER RATIO(HY)

Highest at 3.75 times

RAW MATERIAL COST(Y)

Fallen by -4.87% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.84 times

-8What is not working for the Company

INTEREST(HY)

At CNY 29.57 MM has Grown at 16.3%

INTEREST COVERAGE RATIO(Q)

Lowest at 463.93

OPERATING PROFIT MARGIN(Q)

Lowest at 8.33 %

OPERATING PROFIT(Q)

Lowest at CNY 68.25 MM

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

Net Sales

At CNY 1,838.87 MM has Grown at 34.71%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 114.93 MM has Grown at 62.95%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 3.75 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.84 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4.87% (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 Dongguan YuTong Optical Technology Co., Ltd.

Interest

At CNY 29.57 MM has Grown at 16.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 463.93

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 8.33 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 68.25 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)