G-Bits Network Technology (Xiamen) Co., Ltd. (603444) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

G-Bits Network Technology (Xiamen) Co., Ltd.

Why is G-Bits Network Technology (Xiamen) Co., Ltd. ?

With a growth in Net Profit of 57.58%, the company declared Outstanding results in Sep 25

INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
OPERATING CASH FLOW(Y) Highest at CNY 2,340.33 MM
NET SALES(Q) Highest at CNY 1,967.88 MM

With ROE of 26.32%, it has a very attractive valuation with a 8.11 Price to Book Value

Over the past year, while the stock has generated a return of 71.35%, its profits have risen by 13.5% ; the PEG ratio of the company is 2.3
At the current price, the company has a high dividend yield of 2

Market Beating Performance

The stock has generated a return of 71.35% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to G-Bits Network Technology (Xiamen) 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 G-Bits Network Technology (Xiamen) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

G-Bits Network Technology (Xiamen) Co., Ltd.

25.86%

2.39

45.86%

China Shanghai Composite

16.78%

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)

17.26%

EBIT Growth (5y)

14.52%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.77

Sales to Capital Employed (avg)

0.89

Tax Ratio

7.23%

Dividend Payout Ratio

78.41%

Pledged Shares

Institutional Holding

ROCE (avg)

161.33%

ROE (avg)

33.23%

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

3.88

EV to EBIT

6.46

EV to EBITDA

6.35

EV to Capital Employed

52.38

EV to Sales

2.55

PEG Ratio

0.11

Dividend Yield

6.06%

ROCE (Latest)

810.72%

ROE (Latest)

39.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

29What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,218.17 MM

NET PROFIT(HY)

At CNY 1,075.41 MM has Grown at 93.83%

ROCE(HY)

Highest at 36.25%

INTEREST COVERAGE RATIO(Q)

Highest at 289,438.84

RAW MATERIAL COST(Y)

Fallen by -4.05% (YoY

CASH AND EQV(HY)

Highest at CNY 11,133.39 MM

DEBT-EQUITY RATIO (HY)

Lowest at -94.17 %

DEBTORS TURNOVER RATIO(HY)

Highest at 25.41 times

NET SALES(Q)

At CNY 1,847.35 MM has Grown at 19.09%

-2What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for G-Bits Network Technology (Xiamen) Co., Ltd.

Net Profit

At CNY 1,075.41 MM has Grown at 93.83%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 3,218.17 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Highest at 289,438.84

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

At CNY 1,847.35 MM has Grown at 19.09%

over average net sales of the previous four periods of CNY 1,551.16 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 11,133.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -94.17 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 25.41 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 -4.05% (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