Why is ENC Digital Technology Co. Ltd. ?
1
With a growth in Operating Profit of 77.86%, the company declared Very Positive results in Mar 25
- NET PROFIT(HY) At CNY 3.38 MM has Grown at 103.58%
- OPERATING CASH FLOW(Y) Highest at CNY 354.5 MM
- RAW MATERIAL COST(Y) Fallen by -35.77% (YoY)
2
With ROE of 0.30%, it has a fair valuation with a 1.16 Price to Book Value
- Over the past year, while the stock has generated a return of 70.65%, its profits have risen by 112.7% ; the PEG ratio of the company is 3.5
3
Market Beating Performance
- The stock has generated a return of 70.65% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%
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.
70.65%
3.77
28.36%
China Shanghai Composite
15.19%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
-23.97%
EBIT Growth (5y)
-220.24%
EBIT to Interest (avg)
-15.14
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.33
Sales to Capital Employed (avg)
0.20
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
392
Industry P/E
Price to Book Value
1.16
EV to EBIT
-90.84
EV to EBITDA
44.36
EV to Capital Employed
1.24
EV to Sales
4.93
PEG Ratio
3.48
Dividend Yield
0.15%
ROCE (Latest)
-1.37%
ROE (Latest)
0.30%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
12What is working for the Company
NET PROFIT(HY)
At CNY 3.38 MM has Grown at 103.58%
OPERATING CASH FLOW(Y)
Highest at CNY 354.5 MM
RAW MATERIAL COST(Y)
Fallen by -35.77% (YoY
-18What is not working for the Company
NET SALES(Q)
At CNY 114.6 MM has Fallen at -30.58%
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.37%
OPERATING PROFIT(Q)
Lowest at CNY -2.89 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -2.53 %
NET PROFIT(Q)
At CNY 4.14 MM has Fallen at -48.71%
Here's what is working for ENC Digital Technology Co. Ltd.
Operating Cash Flow
Highest at CNY 354.5 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Raw Material Cost
Fallen by -35.77% (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 ENC Digital Technology Co. Ltd.
Net Sales
At CNY 114.6 MM has Fallen at -30.58%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY -2.89 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at -2.53 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
At CNY 4.14 MM has Fallen at -48.71%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Inventory Turnover Ratio
Lowest at 2.37% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio






