ENC Digital Technology Co. Ltd. (603869) 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

ENC Digital Technology Co. Ltd.

Why is ENC Digital Technology Co. Ltd. ?

With a growth in Operating Profit of 25.68%, the company declared Very Positive results in Sep 25

PRE-TAX PROFIT(Q) At CNY 24.28 MM has Grown at 574.53%
OPERATING CASH FLOW(Y) Highest at CNY 341.17 MM
ROCE(HY) Highest at 1.01%

With ROE of 0.30%, it has a fair valuation with a 1.19 Price to Book Value

Over the past year, while the stock has generated a return of 64.21%, its profits have risen by 112.7% ; the PEG ratio of the company is 3.6

Market Beating Performance

The stock has generated a return of 64.21% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ENC Digital Technology Co. Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is ENC Digital Technology Co. Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

ENC Digital Technology Co. Ltd.

-100.0%

2.97

29.48%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-11.77%

EBIT Growth (5y)

6.71%

EBIT to Interest (avg)

-15.14

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

0.19

Tax Ratio

100.00%

Dividend Payout Ratio

31.73%

Pledged Shares

Institutional Holding

ROCE (avg)

0.09%

ROE (avg)

0.89%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

260

Industry P/E

Price to Book Value

1.25

EV to EBIT

-371.75

EV to EBITDA

37.37

EV to Capital Employed

1.35

EV to Sales

5.40

PEG Ratio

9.29

Dividend Yield

0.14%

ROCE (Latest)

-0.36%

ROE (Latest)

0.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

6What is working for the Company

NET PROFIT(9M)

At CNY 7.87 MM has Grown at 686.57%

INVENTORY TURNOVER RATIO(HY)

Highest at 6.01 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.13 times

-17What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -9.1 MM has Fallen at -278.7%

NET PROFIT(Q)

At CNY -2.64 MM has Fallen at -163.69%

RAW MATERIAL COST(Y)

Grown by 9.37% (YoY

CASH AND EQV(HY)

Lowest at CNY 2,797.01 MM

DEBT-EQUITY RATIO (HY)

Highest at -28.66 %

NET SALES(Q)

Lowest at CNY 103.04 MM

OPERATING PROFIT(Q)

Lowest at CNY -14.03 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -13.61 %

Here's what is working for ENC Digital Technology Co. Ltd.

Inventory Turnover Ratio

Highest at 6.01 times

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 1.13 times

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 ENC Digital Technology Co. Ltd.

Pre-Tax Profit

At CNY -9.1 MM has Fallen at -278.7%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -2.64 MM has Fallen at -163.69%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 103.04 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -11.22%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -14.03 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -13.61 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 2,797.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -28.66 %

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 9.37% (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