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Hicon Network Technology (Shandong) Co., Ltd.

  • Market Cap: Micro Cap
  • Industry: Telecom - Services
  • ISIN: CNE1000064B4
CNY
19.73
-0.18 (-0.9%)

Sep 24

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Hicon Network Technology (Shandong) Co., Ltd.

Why is Hicon Network Technology (Shandong) Co., Ltd. ?

1
Poor long term growth as Net Sales has grown by an annual rate of -2.60% and Operating profit at -3.88% over the last 5 years
2
Negative results in Mar 26
  • OPERATING CASH FLOW(Y) Lowest at CNY 46.64 MM
  • ROCE(HY) Lowest at 10.35%
  • DEBT-EQUITY RATIO (HY) Highest at -80.67 %
3
With ROE of 9.77%, it has a attractive valuation with a 0.64 Price to Book Value
  • Over the past year, while the stock has generated a return of -26.65%, its profits have fallen by -5.7%
4
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -26.65% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Hicon Network Technology (Shandong) Co., Ltd. should be less than 10%
  2. Overall Portfolio exposure to Telecom - Services should be less than 30%

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

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

Is Hicon Network Technology (Shandong) Co., Ltd. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Hicon Network Technology (Shandong) Co., Ltd.
-19.89%
-0.37
48.16%
China Shanghai Composite
0.9%
1.20
14.07%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
-2.60%
EBIT Growth (5y)
-3.88%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.89
Sales to Capital Employed (avg)
0.27
Tax Ratio
13.40%
Dividend Payout Ratio
62.30%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
85.09%
ROE (avg)
13.23%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.61
EV to EBIT
7.91
EV to EBITDA
7.56
EV to Capital Employed
4.14
EV to Sales
3.27
PEG Ratio
NA
Dividend Yield
1.04%
ROCE (Latest)
52.39%
ROE (Latest)
9.77%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company
NET SALES(Q)

Highest at CNY 247.49 MM

-16What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at CNY -18.08 MM

ROCE(HY)

Lowest at 8.97%

RAW MATERIAL COST(Y)

Grown by 8.08% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -81.76 %

OPERATING PROFIT(Q)

Lowest at CNY 75.89 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 30.66 %

PRE-TAX PROFIT(Q)

Lowest at CNY 77.65 MM

NET PROFIT(Q)

Lowest at CNY 68.91 MM

EPS(Q)

Lowest at CNY 0.17

Here's what is working for Hicon Network Technology (Shandong) Co., Ltd.

Net Sales
Highest at CNY 247.49 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Depreciation
At CNY 6.22 MM has Grown at inf%
period on period (QoQ)
MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CNY MM)

Here's what is not working for Hicon Network Technology (Shandong) Co., Ltd.

Operating Cash Flow
Lowest at CNY -18.08 MM and Fallen
In each year in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit
Lowest at CNY 75.89 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin
Lowest at 30.66 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at CNY 77.65 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit
Fallen at -36.11%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit
Lowest at CNY 68.91 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit
Fallen at -36.19%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS
Lowest at CNY 0.17
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio
Highest at -81.76 %
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

Raw Material Cost
Grown by 8.08% (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

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