Why is Dongnan Electronics Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 9.85%
- The company has been able to generate a Return on Capital Employed (avg) of 9.85% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 6.90% and Operating profit at -10.82% over the last 5 years
3
Negative results in Mar 25
- INTEREST(9M) At CNY 0.01 MM has Grown at 18.75%
- INTEREST COVERAGE RATIO(Q) Lowest at 152,302.78
- OPERATING PROFIT(Q) Lowest at CNY 10.07 MM
4
With ROE of 4.95%, it has a attractive valuation with a 0.90 Price to Book Value
- Over the past year, while the stock has generated a return of 19.25%, its profits have risen by 11% ; the PEG ratio of the company is 1.6
How much should you hold?
- Overall Portfolio exposure to Dongnan Electronics 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 Dongnan Electronics Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Dongnan Electronics Co., Ltd.
10.9%
0.85
49.78%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
6.90%
EBIT Growth (5y)
-10.82%
EBIT to Interest (avg)
34.33
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.60
Sales to Capital Employed (avg)
0.32
Tax Ratio
10.50%
Dividend Payout Ratio
66.87%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.85%
ROE (avg)
4.87%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
0.90
EV to EBIT
7.43
EV to EBITDA
4.64
EV to Capital Employed
0.76
EV to Sales
0.88
PEG Ratio
1.62
Dividend Yield
NA
ROCE (Latest)
10.28%
ROE (Latest)
4.95%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
4What is working for the Company
ROCE(HY)
Highest at 5.4%
RAW MATERIAL COST(Y)
Fallen by -6.07% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 3.51%
-7What is not working for the Company
INTEREST(9M)
At CNY 0.01 MM has Grown at 18.75%
INTEREST COVERAGE RATIO(Q)
Lowest at 152,302.78
OPERATING PROFIT(Q)
Lowest at CNY 10.07 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 14.61 %
Here's what is working for Dongnan Electronics Co., Ltd.
Inventory Turnover Ratio
Highest at 3.51%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -6.07% (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 Dongnan Electronics Co., Ltd.
Interest
At CNY 0.01 MM has Grown at 18.75%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 152,302.78
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 10.07 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 14.61 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales






