Why is Hefei Gocom Information Technology Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 7.83%
- The company has been able to generate a Return on Capital Employed (avg) of 7.83% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 10.41% and Operating profit at -178.39% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 6.80% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 10.41% and Operating profit at -178.39% over the last 5 years
4
The company has declared Negative results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at CNY 43.54 MM
- NET SALES(9M) At CNY 152 MM has Grown at -16.53%
- NET PROFIT(HY) At CNY 3.89 MM has Grown at -43.92%
5
With ROE of 1.18%, it has a very expensive valuation with a 4.86 Price to Book Value
- Over the past year, while the stock has generated a return of 54.08%, its profits have fallen by -73.5%
- At the current price, the company has a high dividend yield of 0.1
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 Electronics & Appliances)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hefei Gocom Information Technology Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hefei Gocom Information Technology Co., Ltd.
47.21%
2.29
66.61%
China Shanghai Composite
0.9%
0.22
14.72%
Quality key factors
Factor
Value
Sales Growth (5y)
10.41%
EBIT Growth (5y)
-178.39%
EBIT to Interest (avg)
23.88
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.38
Sales to Capital Employed (avg)
0.42
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
95.65%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.61%
ROE (avg)
6.80%
Valuation Key Factors 
Factor
Value
P/E Ratio
411
Industry P/E
Price to Book Value
4.86
EV to EBIT
-531.13
EV to EBITDA
1504.70
EV to Capital Employed
7.31
EV to Sales
14.58
PEG Ratio
NA
Dividend Yield
0.08%
ROCE (Latest)
-1.38%
ROE (Latest)
1.18%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
1What is working for the Company
NET SALES(Q)
Highest at CNY 65.17 MM
-16What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 43.54 MM
NET SALES(9M)
At CNY 152 MM has Grown at -16.53%
NET PROFIT(HY)
At CNY 3.89 MM has Grown at -43.92%
ROCE(HY)
Lowest at 1.17%
RAW MATERIAL COST(Y)
Grown by 40.07% (YoY
Here's what is working for Hefei Gocom Information Technology Co., Ltd.
Net Sales
Highest at CNY 65.17 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Here's what is not working for Hefei Gocom Information Technology Co., Ltd.
Net Profit
At CNY 3.89 MM has Grown at -43.92%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Operating Cash Flow
Lowest at CNY 43.54 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Raw Material Cost
Grown by 40.07% (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
Non Operating Income
Highest at CNY 1.15 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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