Merit Interactive Co. Ltd. (300766) 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

Merit Interactive Co. Ltd.

Why is Merit Interactive Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 2.49%

The company has been able to generate a Return on Capital Employed (avg) of 2.49% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -2.96% and Operating profit at -235.50% over the last 5 years

Negative results in Sep 25

NET PROFIT(HY) At CNY -37.66 MM has Grown at -503.45%
INTEREST(HY) At CNY 0.12 MM has Grown at 157.36%
ROCE(HY) Lowest at -7.87%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -32.67%, its profits have fallen by -124.4%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 13.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -32.67% returns

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 Merit Interactive Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Merit Interactive Co. Ltd.

-31.61%

3.69

62.14%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.96%

EBIT Growth (5y)

-235.50%

EBIT to Interest (avg)

-7.66

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.27

Tax Ratio

12.38%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.49%

ROE (avg)

2.39%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

11.07

EV to EBIT

-367.19

EV to EBITDA

493.98

EV to Capital Employed

13.61

EV to Sales

35.73

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.71%

ROE (Latest)

-6.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Bullish

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 33.43 MM

NET PROFIT(HY)

Higher at CNY -37.66 MM

-24What is not working for the Company

NET PROFIT(HY)

At CNY -37.66 MM has Grown at -503.45%

INTEREST(HY)

At CNY 0.12 MM has Grown at 157.36%

ROCE(HY)

Lowest at -7.87%

DEBT-EQUITY RATIO (HY)

Highest at -20.31 %

RAW MATERIAL COST(Y)

Grown by 18.93% (YoY

CASH AND EQV(HY)

Lowest at CNY 641.1 MM

OPERATING PROFIT(Q)

Lowest at CNY -25.92 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -22.36 %

Here's what is working for Merit Interactive Co. Ltd.

Net Profit

Higher at CNY -37.66 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 33.43 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Merit Interactive Co. Ltd.

Net Profit

At CNY -37.66 MM has Grown at -503.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 0.12 MM has Grown at 157.36%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -20.31 % and Grown

In each half year 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

Operating Profit

Lowest at CNY -25.92 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -22.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 641.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 18.93% (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