Fujian Star-Net Communication Co., Ltd. (002396) 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

Fujian Star-Net Communication Co., Ltd.

Why is Fujian Star-Net Communication Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 14.18% and Operating profit at 6.42% over the last 5 years

Negative results in Mar 26

INTEREST(Q) At CNY 11.51 MM has Grown at 24.61%
OPERATING PROFIT MARGIN(Q) Lowest at 2.05 %
NET PROFIT(Q) Lowest at CNY 18.58 MM

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 IT - Hardware)

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

Is Fujian Star-Net Communication Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Fujian Star-Net Communication Co., Ltd.

53.5%

2.69

47.63%

China Shanghai Composite

20.36%

1.53

13.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.18%

EBIT Growth (5y)

6.42%

EBIT to Interest (avg)

6.72

Debt to EBITDA (avg)

0.70

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

1.82

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

35.42%

Pledged Shares

Institutional Holding

ROCE (avg)

5.66%

ROE (avg)

14.84%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.59

EV to EBIT

31.87

EV to EBITDA

21.03

EV to Capital Employed

2.64

EV to Sales

0.93

PEG Ratio

0.52

Dividend Yield

0.82%

ROCE (Latest)

8.28%

ROE (Latest)

14.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.62% (YoY

-16What is not working for the Company

INTEREST(Q)

At CNY 11.51 MM has Grown at 24.61%

OPERATING PROFIT MARGIN(Q)

Lowest at 2.05 %

NET PROFIT(Q)

Lowest at CNY 18.58 MM

EPS(Q)

Lowest at CNY 0.06

Here's what is working for Fujian Star-Net Communication Co., Ltd.

Raw Material Cost

Fallen by -0.62% (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 Fujian Star-Net Communication Co., Ltd.

Net Profit

At CNY 18.58 MM has Fallen at -55.41%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 11.51 MM has Grown at 24.61%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 2.05 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 18.58 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)