Linkage Software Co., Ltd. (688588) 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

Linkage Software Co., Ltd.

Why is Linkage Software Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 11.93% and Operating profit at 1.60% over the last 5 years

With a fall in Net Sales of -10.46%, the company declared Very Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 144.78 MM
INTEREST COVERAGE RATIO(Q) Lowest at 401.87
RAW MATERIAL COST(Y) Grown by 11.84% (YoY)

With ROE of 18.57%, it has a attractive valuation with a 5.74 Price to Book Value

Over the past year, while the stock has generated a return of -3.13%, its profits have risen by 432.4% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 1.1

Below par performance in long term as well as near term

Along with generating -3.13% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Software Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Linkage Software Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Linkage Software Co., Ltd.

-35.12%

1.65

45.77%

China Shanghai Composite

19.22%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.22%

EBIT Growth (5y)

-3.76%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

0.64

Tax Ratio

16.19%

Dividend Payout Ratio

73.26%

Pledged Shares

Institutional Holding

ROCE (avg)

27.40%

ROE (avg)

10.43%

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

2.07

EV to EBIT

13.11

EV to EBITDA

11.29

EV to Capital Employed

3.02

EV to Sales

1.87

PEG Ratio

Dividend Yield

3.15%

ROCE (Latest)

23.01%

ROE (Latest)

3.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 223.43 MM

RAW MATERIAL COST(Y)

Fallen by -23.08% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 105.06 times

-18What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 6.04 MM has Fallen at -91.84%

NET PROFIT(Q)

At CNY -1.96 MM has Fallen at -103.04%

INTEREST(Q)

At CNY 2.26 MM has Grown at 85.89%

Here's what is working for Linkage Software Co., Ltd.

Operating Cash Flow

Highest at CNY 223.43 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)

Inventory Turnover Ratio

Highest at 105.06 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -23.08% (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 Linkage Software Co., Ltd.

Pre-Tax Profit

At CNY 6.04 MM has Fallen at -91.84%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -1.96 MM has Fallen at -103.04%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 2.26 MM has Grown at 85.89%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)