Why is ENC Digital Technology Co. Ltd. ?
1
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%
2
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
3
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%
How much should you buy?
- 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.
49.67%
2.97
29.48%
China Shanghai Composite
13.33%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
-20.49%
EBIT Growth (5y)
16.13%
EBIT to Interest (avg)
-15.14
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.33
Sales to Capital Employed (avg)
0.19
Tax Ratio
100.00%
Dividend Payout Ratio
31.00%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.09%
ROE (avg)
0.89%
Valuation Key Factors 
Factor
Value
P/E Ratio
402
Industry P/E
Price to Book Value
1.19
EV to EBIT
-94.00
EV to EBITDA
45.91
EV to Capital Employed
1.29
EV to Sales
5.10
PEG Ratio
3.56
Dividend Yield
0.15%
ROCE (Latest)
-1.37%
ROE (Latest)
0.30%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Movement
29What is working for the Company
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%
NET PROFIT(Q)
Highest at CNY 19.62 MM
RAW MATERIAL COST(Y)
Fallen by -25.49% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 4.57 times
DEBTORS TURNOVER RATIO(HY)
Highest at 0.91 times
NET SALES(Q)
At CNY 142.33 MM has Grown at 24.6%
EPS(Q)
Highest at CNY 0.04
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for ENC Digital Technology Co. Ltd.
Pre-Tax Profit
At CNY 24.28 MM has Grown at 574.53%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 19.62 MM has Grown at 924.95%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Net Profit
Highest at CNY 19.62 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Operating Cash Flow
Highest at CNY 341.17 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
At CNY 142.33 MM has Grown at 24.6%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
EPS
Highest at CNY 0.04
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Inventory Turnover Ratio
Highest at 4.57 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 0.91 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -25.49% (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






