Why is Jiangxi Welgao Electronics Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 4.19%
- The company has been able to generate a Return on Capital Employed (avg) of 4.19% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 25.30% and Operating profit at -10.43% over the last 5 years
3
The company has declared positive results in Mar'2025 after 3 consecutive negative quarters
- NET SALES(Q) At CNY 308.54 MM has Grown at 51.88%
- PRE-TAX PROFIT(Q) Highest at CNY 25.1 MM
- NET PROFIT(Q) Highest at CNY 22.74 MM
4
With ROE of 4.08%, it has a attractive valuation with a 1.24 Price to Book Value
- Over the past year, while the stock has generated a return of 69.61%, its profits have fallen by -36%
5
Market Beating Performance
- The stock has generated a return of 69.61% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%
How much should you hold?
- Overall Portfolio exposure to Jiangxi Welgao Electronics Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Jiangxi Welgao Electronics Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Jiangxi Welgao Electronics Co., Ltd.
47.3%
1.37
67.00%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
25.30%
EBIT Growth (5y)
-10.43%
EBIT to Interest (avg)
10.63
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.21
Sales to Capital Employed (avg)
83.75
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
32.30%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.19%
ROE (avg)
4.89%
Valuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
Price to Book Value
1.24
EV to EBIT
72.28
EV to EBITDA
16.63
EV to Capital Employed
1.27
EV to Sales
1.38
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
1.76%
ROE (Latest)
4.08%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
13What is working for the Company
NET SALES(Q)
At CNY 308.54 MM has Grown at 51.88%
PRE-TAX PROFIT(Q)
Highest at CNY 25.1 MM
NET PROFIT(Q)
Highest at CNY 22.74 MM
EPS(Q)
Highest at CNY 0.17
-14What is not working for the Company
INTEREST(HY)
At CNY 2.89 MM has Grown at 270.39%
NET PROFIT(9M)
At CNY 39.77 MM has Grown at -32.63%
RAW MATERIAL COST(Y)
Grown by 13.51% (YoY
Here's what is working for Jiangxi Welgao Electronics Co., Ltd.
Net Sales
At CNY 308.54 MM has Grown at 51.88%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Net Sales
Highest at CNY 308.54 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
Highest at CNY 25.1 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 22.74 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.17
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Here's what is not working for Jiangxi Welgao Electronics Co., Ltd.
Interest
At CNY 2.89 MM has Grown at 270.39%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Raw Material Cost
Grown by 13.51% (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






