Fanli Digital Technology Co., Ltd. (600228) 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

Fanli Digital Technology Co., Ltd.

Why is Fanli Digital Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 90.58%

The company has been able to generate a Return on Capital Employed (avg) of 90.58% 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 0.77% and Operating profit at -249.01% over the last 5 years

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

NET PROFIT(HY) At CNY -31 MM has Grown at -516.46%
INTEREST(9M) At CNY 0.3 MM has Grown at 23.13%
OPERATING CASH FLOW(Y) Lowest at CNY -96.17 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 10.97%, its profits have fallen by -221.3%

Underperformed the market in the last 1 year

The stock has generated a return of 10.97% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Fanli Digital Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Fanli Digital Technology Co., Ltd.

4.4%

0.11

54.55%

China Shanghai Composite

16.01%

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)

0.77%

EBIT Growth (5y)

-249.01%

EBIT to Interest (avg)

4.69

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.87

Sales to Capital Employed (avg)

0.49

Tax Ratio

0.44%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

90.58%

ROE (avg)

3.09%

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

5.64

EV to EBIT

-36.25

EV to EBITDA

-39.37

EV to Capital Employed

22.25

EV to Sales

7.06

PEG Ratio

Dividend Yield

ROCE (Latest)

-61.39%

ROE (Latest)

-10.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

18What is working for the Company

NET SALES(Q)

At CNY 129.4 MM has Grown at 76.71%

RAW MATERIAL COST(Y)

Fallen by -31.43% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 227.63 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.57 times

OPERATING PROFIT MARGIN(Q)

Highest at -9.67 %

-15What is not working for the Company

NET PROFIT(HY)

At CNY -31 MM has Grown at -516.46%

INTEREST(9M)

At CNY 0.3 MM has Grown at 23.13%

OPERATING CASH FLOW(Y)

Lowest at CNY -96.17 MM

ROCE(HY)

Lowest at -11.53%

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

Net Sales

At CNY 129.4 MM has Grown at 76.71%

over average net sales of the previous four periods of CNY 73.22 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Operating Profit Margin

Highest at -9.67 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 227.63 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 3.57 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -31.43% (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 Fanli Digital Technology Co., Ltd.

Net Profit

At CNY -31 MM has Grown at -516.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 0.3 MM has Grown at 23.13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -96.17 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)