Hangzhou CNCR-IT Co., Ltd. (300250) 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

Hangzhou CNCR-IT Co., Ltd.

Why is Hangzhou CNCR-IT Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.70%

The company has been able to generate a Return on Capital Employed (avg) of 2.70% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -12.29% and Operating profit at 13.96% over the last 5 years

With a fall in Net Sales of -29.53%, the company declared Very Negative results in Mar 26

INTEREST(HY) At CNY 2.46 MM has Grown at 95.14%
INVENTORY TURNOVER RATIO(HY) Lowest at 1.97 times
RAW MATERIAL COST(Y) Grown by 27.61% (YoY)

With ROE of 0.41%, it has a fair valuation with a 4.02 Price to Book Value

Over the past year, while the stock has generated a return of -9.47%, its profits have risen by 104.3% ; the PEG ratio of the company is 9.4

Below par performance in long term as well as near term

Along with generating -9.47% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hangzhou CNCR-IT Co., Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Hangzhou CNCR-IT Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hangzhou CNCR-IT Co., Ltd.

-44.49%

0.59

71.30%

China Shanghai Composite

0.9%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-12.29%

EBIT Growth (5y)

13.96%

EBIT to Interest (avg)

-26.54

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

0.46

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.70%

ROE (avg)

3.18%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

1313

Industry P/E

Price to Book Value

5.41

EV to EBIT

-514.70

EV to EBITDA

1202.86

EV to Capital Employed

6.86

EV to Sales

12.16

PEG Ratio

12.59

Dividend Yield

ROCE (Latest)

-1.33%

ROE (Latest)

0.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

16What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.75% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 2.01 times

OPERATING PROFIT(Q)

Highest at CNY 6.6 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.81 %

PRE-TAX PROFIT(Q)

Highest at CNY 3.79 MM

NET PROFIT(Q)

Highest at CNY 4.13 MM

-11What is not working for the Company

INTEREST(9M)

At CNY 2.56 MM has Grown at 103.51%

NET PROFIT(HY)

At CNY 1.61 MM has Grown at -52.6%

DEBT-EQUITY RATIO (HY)

Highest at -20.26 %

CASH AND EQV(HY)

Lowest at CNY 327 MM

Here's what is working for Hangzhou CNCR-IT Co., Ltd.

Pre-Tax Profit

At CNY 3.79 MM has Grown at 734.67%

over average net sales of the previous four periods of CNY 0.45 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 4.13 MM has Grown at 459.87%

over average net sales of the previous four periods of CNY 0.74 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Profit

Highest at CNY 6.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 9.81 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 3.79 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 4.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 2.01 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 1.75% (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 Hangzhou CNCR-IT Co., Ltd.

Interest

At CNY 2.56 MM has Grown at 103.51%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -20.26 % 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

Cash and Eqv

Lowest at CNY 327 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

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