Eastone Century Technology Co., Ltd. (300310) 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

Eastone Century Technology Co., Ltd.

Why is Eastone Century Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.54%

The company has been able to generate a Return on Capital Employed (avg) of 0.54% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 0.94% and Operating profit at 10.10% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At CNY 13.15 MM has Grown at -36.97%
ROCE(HY) Lowest at -2.7%
CASH AND EQV(HY) Lowest at CNY 1,075.89 MM

With ROE of -2.77%, it has a risky valuation with a 2.80 Price to Book Value

Over the past year, while the stock has generated a return of -6.81%, its profits have fallen by -169.2%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 25.05% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.81% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Eastone Century Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Eastone Century Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Eastone Century Technology Co., Ltd.

-7.32%

1.44

40.79%

China Shanghai Composite

24.7%

1.93

12.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.94%

EBIT Growth (5y)

10.10%

EBIT to Interest (avg)

-5.92

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

1.28

Tax Ratio

29.31%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.54%

ROE (avg)

1.75%

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

2.80

EV to EBIT

-65.85

EV to EBITDA

-100.38

EV to Capital Employed

3.37

EV to Sales

1.93

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.12%

ROE (Latest)

-2.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2.01 MM

NET PROFIT(Q)

At CNY 4.61 MM has Grown at 141%

RAW MATERIAL COST(Y)

Fallen by -21.64% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 4.88 MM

-15What is not working for the Company

NET PROFIT(HY)

At CNY 13.15 MM has Grown at -36.97%

ROCE(HY)

Lowest at -2.7%

CASH AND EQV(HY)

Lowest at CNY 1,075.89 MM

DEBT-EQUITY RATIO (HY)

Highest at -23.24 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.25 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.31 times

NET SALES(Q)

Lowest at CNY 474.32 MM

Here's what is working for Eastone Century Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 2.01 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 4.88 MM has Grown at 138.6%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 4.61 MM has Grown at 141%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 4.88 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -21.64% (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 Eastone Century Technology Co., Ltd.

Net Sales

Lowest at CNY 474.32 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -14.94%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 1,075.89 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -23.24 %

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

Inventory Turnover Ratio

Lowest at 3.25 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio