Hicon Network Technology (Shandong) 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

Hicon Network Technology (Shandong) Co., Ltd.

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

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

Flat 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 %

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 -24.52%, its profits have fallen by -5.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -24.52% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hicon Network Technology (Shandong) Co., Ltd. should be less than 10%
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.

-24.52%

-0.38

47.97%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

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

15.14%

Dividend Payout Ratio

62.30%

Pledged Shares

Institutional Holding

ROCE (avg)

96.00%

ROE (avg)

13.23%

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

0.64

EV to EBIT

-1.61

EV to EBITDA

-1.53

EV to Capital Employed

-0.84

EV to Sales

-0.66

PEG Ratio

Dividend Yield

2.59%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

9.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly Bullish

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.33% (YoY

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 46.64 MM

ROCE(HY)

Lowest at 10.35%

DEBT-EQUITY RATIO (HY)

Highest at -80.67 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.14 times

OPERATING PROFIT(Q)

Lowest at CNY 92.15 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 39.97 %

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

Raw Material Cost

Fallen by 1.33% (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 Hicon Network Technology (Shandong) Co., Ltd.

Operating Cash Flow

Lowest at CNY 46.64 MM

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 92.15 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 39.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -80.67 %

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

Debtors Turnover Ratio

Lowest at 1.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio