Founder Technology Group Co., Ltd. (600601) 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

Founder Technology Group Co., Ltd.

Why is Founder Technology Group Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.06%

Poor long term growth as Net Sales has grown by an annual rate of -5.73% and Operating profit at 20.32% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Positive results in Sep 25

DEBTORS TURNOVER RATIO(HY) Highest at 3.91 times
RAW MATERIAL COST(Y) Fallen by -14.1% (YoY)
CASH AND EQV(HY) Highest at CNY 2,947.68 MM

With ROE of 6.56%, it has a expensive valuation with a 9.84 Price to Book Value

Over the past year, while the stock has generated a return of 125.05%, its profits have risen by 18.5% ; the PEG ratio of the company is 8.1

Consistent Returns over the last 3 years

Along with generating 125.05% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Founder Technology Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Founder Technology Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Founder Technology Group Co., Ltd.

165.21%

5.80

58.22%

China Shanghai Composite

24.7%

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)

-5.73%

EBIT Growth (5y)

20.32%

EBIT to Interest (avg)

3.93

Debt to EBITDA (avg)

0.40

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

0.71

Tax Ratio

7.60%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.06%

ROE (avg)

2.43%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

150

Industry P/E

Price to Book Value

9.84

EV to EBIT

135.45

EV to EBITDA

70.19

EV to Capital Employed

8.61

EV to Sales

10.65

PEG Ratio

8.12

Dividend Yield

ROCE (Latest)

6.36%

ROE (Latest)

6.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

25What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 3.91 times

RAW MATERIAL COST(Y)

Fallen by -14.1% (YoY

CASH AND EQV(HY)

Highest at CNY 2,947.68 MM

NET SALES(Q)

Highest at CNY 1,257.66 MM

PRE-TAX PROFIT(Q)

Highest at CNY 148.54 MM

NET PROFIT(Q)

Highest at CNY 143.76 MM

EPS(Q)

Highest at CNY 0.03

-11What is not working for the Company

INTEREST(HY)

At CNY 11.27 MM has Grown at 112.09%

DEBT-EQUITY RATIO (HY)

Highest at 14.36 %

OPERATING PROFIT MARGIN(Q)

Lowest at 11.21 %

Here's what is working for Founder Technology Group Co., Ltd.

Net Sales

At CNY 1,257.66 MM has Grown at 44.34%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 148.54 MM has Grown at 149.03%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 143.76 MM has Grown at 145.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 3.91 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

Highest at CNY 1,257.66 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 148.54 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 143.76 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 2,947.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -14.1% (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 Founder Technology Group Co., Ltd.

Interest

At CNY 11.27 MM has Grown at 112.09%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 11.21 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 14.36 %

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