Why is Hubei Century Network Technology Inc. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 3.72% and Operating profit at -12.46% over the last 5 years
- INTEREST(HY) At CNY 0.07 MM has Grown at 35.23%
- PRE-TAX PROFIT(Q) At CNY -3.77 MM has Fallen at -121.6%
- NET PROFIT(Q) At CNY -2.37 MM has Fallen at -115.95%
2
With ROE of 2.23%, it has a very expensive valuation with a 2.63 Price to Book Value
- Over the past year, while the stock has generated a return of -28.70%, its profits have risen by 112.8% ; the PEG ratio of the company is 1.1
- At the current price, the company has a high dividend yield of 0
3
Below par performance in long term as well as near term
- Along with generating -28.70% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 Media & Entertainment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hubei Century Network Technology Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hubei Century Network Technology Inc.
-33.36%
-0.35
38.40%
China Shanghai Composite
21.43%
1.55
13.83%
Quality key factors
Factor
Value
Sales Growth (5y)
3.72%
EBIT Growth (5y)
-12.46%
EBIT to Interest (avg)
47.24
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.70
Sales to Capital Employed (avg)
0.76
Tax Ratio
6.91%
Dividend Payout Ratio
10.85%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
23.46%
ROE (avg)
8.38%
Valuation Key Factors 
Factor
Value
P/E Ratio
118
Industry P/E
Price to Book Value
2.63
EV to EBIT
84.87
EV to EBITDA
59.17
EV to Capital Employed
6.47
EV to Sales
2.40
PEG Ratio
1.05
Dividend Yield
NA
ROCE (Latest)
7.62%
ROE (Latest)
2.23%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
9What is working for the Company
NET PROFIT(HY)
Higher at CNY 40.53 MM
-17What is not working for the Company
INTEREST(HY)
At CNY 0.07 MM has Grown at 35.23%
PRE-TAX PROFIT(Q)
At CNY -3.77 MM has Fallen at -121.6%
NET PROFIT(Q)
At CNY -2.37 MM has Fallen at -115.95%
NET SALES(HY)
At CNY 538.79 MM has Grown at -9.91%
RAW MATERIAL COST(Y)
Grown by 33.91% (YoY
Here's what is not working for Hubei Century Network Technology Inc.
Interest
At CNY 0.07 MM has Grown at 35.23%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Pre-Tax Profit
At CNY -3.77 MM has Fallen at -121.6%
over average net sales of the previous four periods of CNY 17.45 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -2.37 MM has Fallen at -115.95%
over average net sales of the previous four periods of CNY 14.86 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Net Sales
At CNY 538.79 MM has Grown at -9.91%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Raw Material Cost
Grown by 33.91% (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






