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 -0.46% and Operating profit at -201.32% over the last 5 years

Flat results in Mar 26

PRE-TAX PROFIT(Q) At CNY -22.46 MM has Fallen at -85.45%
NET PROFIT(Q) At CNY -16.09 MM has Fallen at -101.03%
INTEREST(HY) At CNY 0.27 MM has Grown at 5.09%

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 -24.92%, its profits have risen by 53.5%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 23.91% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -24.92% 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.

-28.83%

2.30

62.70%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.46%

EBIT Growth (5y)

-201.32%

EBIT to Interest (avg)

-7.66

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.29

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

4.65

EV to EBIT

-168.95

EV to EBITDA

259.78

EV to Capital Employed

5.56

EV to Sales

12.98

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.29%

ROE (Latest)

-2.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 79.24 MM

NET SALES(HY)

At CNY 302.27 MM has Grown at 28.05%

NET PROFIT(HY)

Higher at CNY 6.08 MM

ROCE(HY)

Highest at -2.22%

RAW MATERIAL COST(Y)

Fallen by -14.09% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.05 times

-17What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -22.46 MM has Fallen at -85.45%

NET PROFIT(Q)

At CNY -16.09 MM has Fallen at -101.03%

INTEREST(HY)

At CNY 0.27 MM has Grown at 5.09%

DEBT-EQUITY RATIO (HY)

Highest at -19.77 %

CASH AND EQV(HY)

Lowest at CNY 720.46 MM

OPERATING PROFIT(Q)

Lowest at CNY -23.08 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -19.07 %

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

Operating Cash Flow

Highest at CNY 79.24 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)

Net Sales

At CNY 302.27 MM has Grown at 28.05%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 3.05 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -14.09% (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 Merit Interactive Co. Ltd.

Pre-Tax Profit

At CNY -22.46 MM has Fallen at -85.45%

over average net sales of the previous four periods of CNY -12.11 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -16.09 MM has Fallen at -101.03%

over average net sales of the previous four periods of CNY -8 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 0.27 MM has Grown at 5.09%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -19.77 % 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 -23.08 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -19.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 720.46 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents