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

With a growth in Net Sales of 2.4%, the company declared Very Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 1,110.19 MM
NET SALES(HY) At CNY 10,683.31 MM has Grown at 22.13%
ROCE(HY) Highest at 7.22%

With ROE of 15.07%, it has a very attractive valuation with a 2.66 Price to Book Value

Over the past year, while the stock has generated a return of 30.41%, its profits have risen by 59.2% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0.8

Market Beating Performance

The stock has generated a return of 30.41% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.99%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fujian Star-Net Communication Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Fujian Star-Net Communication Co., Ltd.

30.41%

2.05

45.43%

China Shanghai Composite

16.1%

1.13

15.08%

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)

1.80

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

35.89%

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

2.66

EV to EBIT

34.84

EV to EBITDA

20.38

EV to Capital Employed

2.54

EV to Sales

1.01

PEG Ratio

0.30

Dividend Yield

0.81%

ROCE (Latest)

7.30%

ROE (Latest)

15.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,110.19 MM

NET SALES(HY)

At CNY 10,683.31 MM has Grown at 22.13%

ROCE(HY)

Highest at 7.22%

RAW MATERIAL COST(Y)

Fallen by -6.5% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.81 times

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.08 times

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

Net Sales

At CNY 10,683.31 MM has Grown at 22.13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 1,110.19 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 2.81 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -6.5% (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.

Debtors Turnover Ratio

Lowest at 5.08 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio