Guangzhou Frontop Digital Creative Technology Co., Ltd. () 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

Guangzhou Frontop Digital Creative Technology Co., Ltd.

Why is Guangzhou Frontop Digital Creative Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 5.65% and Operating profit at -198.90% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 0.52% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.65% and Operating profit at -198.90% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At CNY 1.99 MM has Grown at 232.47%
ROCE(HY) Lowest at -19.57%
DEBT-EQUITY RATIO (HY) Highest at 0.52 %

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 25.15%, its profits have fallen by -265.9%

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 Telecom - Equipment & Accessories)

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

Is Guangzhou Frontop Digital Creative Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangzhou Frontop Digital Creative Technology Co., Ltd.

24.25%

1.01

48.01%

China Shanghai Composite

16.01%

1.03

14.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.65%

EBIT Growth (5y)

-198.90%

EBIT to Interest (avg)

-57.13

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

0.50

Tax Ratio

3.09%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.52%

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

0.79

EV to EBIT

-3.57

EV to EBITDA

-4.20

EV to Capital Employed

0.79

EV to Sales

1.26

PEG Ratio

Dividend Yield

ROCE (Latest)

-22.11%

ROE (Latest)

-20.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

15What is working for the Company

NET SALES(Q)

At CNY 100.05 MM has Grown at 179.96%

NET PROFIT(HY)

Higher at CNY -73.79 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 1.14 times

-15What is not working for the Company

INTEREST(HY)

At CNY 1.99 MM has Grown at 232.47%

ROCE(HY)

Lowest at -19.57%

DEBT-EQUITY RATIO (HY)

Highest at 0.52 %

RAW MATERIAL COST(Y)

Grown by 30.58% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -54.42 MM

Here's what is working for Guangzhou Frontop Digital Creative Technology Co., Ltd.

Net Sales

At CNY 100.05 MM has Grown at 179.96%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Net Profit

Higher at CNY -73.79 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 1.14 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Guangzhou Frontop Digital Creative Technology Co., Ltd.

Interest

At CNY 1.99 MM has Grown at 232.47%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 0.52 % and Grown

In each half year 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

Operating Profit

Lowest at CNY -54.42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Raw Material Cost

Grown by 30.58% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales