Micro-Tech (Nanjing) Co., Ltd. (688029) 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

Micro-Tech (Nanjing) Co., Ltd.

Why is Micro-Tech (Nanjing) Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 19.57% and Operating profit at 21.20% over the last 5 years

Flat results in Sep 25

INTEREST(Q) Highest at CNY 1.42 MM

With ROE of 15.58%, it has a very attractive valuation with a 4.39 Price to Book Value

Over the past year, while the stock has generated a return of 5.70%, its profits have risen by 15.4% ; the PEG ratio of the company is 1.8
At the current price, the company has a high dividend yield of 2.1

Underperformed the market in the last 1 year

The stock has generated a return of 5.70% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Micro-Tech (Nanjing) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Micro-Tech (Nanjing) Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Micro-Tech (Nanjing) Co., Ltd.

9.83%

0.29

40.00%

China Shanghai Composite

23.91%

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)

17.78%

EBIT Growth (5y)

17.20%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.45

Sales to Capital Employed (avg)

0.71

Tax Ratio

14.35%

Dividend Payout Ratio

49.15%

Pledged Shares

Institutional Holding

ROCE (avg)

29.75%

ROE (avg)

12.38%

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

3.10

EV to EBIT

19.32

EV to EBITDA

16.45

EV to Capital Employed

3.74

EV to Sales

3.64

PEG Ratio

Dividend Yield

2.11%

ROCE (Latest)

19.34%

ROE (Latest)

13.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 765.87 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.05 times

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -2.14% (YoY

-8What is not working for the Company

INTEREST(9M)

At CNY 3.56 MM has Grown at 46.71%

ROCE(HY)

Lowest at 13.5%

CASH AND EQV(HY)

Lowest at CNY 3,387.64 MM

DEBT-EQUITY RATIO (HY)

Highest at -22.74 %

Here's what is working for Micro-Tech (Nanjing) Co., Ltd.

Operating Cash Flow

Highest at CNY 765.87 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 2.05 times and Grown

In each half year 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 -2.14% (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 Micro-Tech (Nanjing) Co., Ltd.

Interest

At CNY 3.56 MM has Grown at 46.71%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 3,387.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -22.74 %

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