Hefei Gocom Information 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

Hefei Gocom Information Technology Co., Ltd.

Why is Hefei Gocom Information Technology Co., Ltd. ?

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)

Poor long term growth as Net Sales has grown by an annual rate of 11.11% and Operating profit at -23.84% over the last 5 years

With a fall in Net Sales of -37.65%, the company declared Very Negative results in Mar 25

OPERATING PROFIT(Q) Lowest at CNY 0.73 MM
OPERATING PROFIT MARGIN(Q) Lowest at 1.82 %

With ROE of 3.66%, it has a fair valuation with a 0.71 Price to Book Value

Over the past year, while the stock has generated a return of 126.08%, its profits have fallen by -2.7%
At the current price, the company has a high dividend yield of 0.6

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 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.

126.08%

4.62

46.77%

China Shanghai Composite

24.8%

1.76

14.08%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.11%

EBIT Growth (5y)

-23.84%

EBIT to Interest (avg)

28.26

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

0.46

Tax Ratio

2.55%

Dividend Payout Ratio

36.69%

Pledged Shares

Institutional Holding

ROCE (avg)

7.83%

ROE (avg)

6.80%

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

0.71

EV to EBIT

16.17

EV to EBITDA

8.99

EV to Capital Employed

0.54

EV to Sales

0.74

PEG Ratio

Dividend Yield

0.55%

ROCE (Latest)

3.34%

ROE (Latest)

3.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 66.4 MM

PRE-TAX PROFIT(Q)

At CNY 1.56 MM has Grown at 136.38%

RAW MATERIAL COST(Y)

Fallen by -17.31% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 1.16%

NET SALES(Q)

At CNY 39.86 MM has Grown at 30.47%

NET PROFIT(Q)

At CNY 1.87 MM has Grown at 61.81%

-2What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 0.73 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.82 %

Here's what is working for Hefei Gocom Information Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 66.4 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)

Pre-Tax Profit

At CNY 1.56 MM has Grown at 136.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 39.86 MM has Grown at 30.47%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 1.87 MM has Grown at 61.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 1.16%

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 -17.31% (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 Hefei Gocom Information Technology Co., Ltd.

Operating Profit

Lowest at CNY 0.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.82 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales