Montage Technology Co., Ltd. (688008) 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

Montage Technology Co., Ltd.

Why is Montage Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 22.98% and Operating profit at 14.85% over the last 5 years

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 2,066.16 MM
NET PROFIT(HY) At CNY 1,099.55 MM has Grown at 46.53%
ROCE(HY) Highest at 18.15%

With ROE of 14.92%, it has a very expensive valuation with a 12.58 Price to Book Value

Over the past year, while the stock has generated a return of 93.95%, its profits have risen by 69.4% ; the PEG ratio of the company is 1.2
At the current price, the company has a high dividend yield of 0.3

Consistent Returns over the last 3 years

Along with generating 93.95% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Montage Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

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

Is Montage Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Montage Technology Co., Ltd.

85.86%

3.68

52.23%

China Shanghai Composite

13.33%

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)

22.98%

EBIT Growth (5y)

14.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.73

Sales to Capital Employed (avg)

0.30

Tax Ratio

4.81%

Dividend Payout Ratio

29.17%

Pledged Shares

Institutional Holding

ROCE (avg)

30.20%

ROE (avg)

10.53%

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

12.58

EV to EBIT

93.73

EV to EBITDA

85.07

EV to Capital Employed

46.12

EV to Sales

31.13

PEG Ratio

1.22

Dividend Yield

0.29%

ROCE (Latest)

49.21%

ROE (Latest)

14.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Mildly 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

25What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,066.16 MM

NET PROFIT(HY)

At CNY 1,099.55 MM has Grown at 46.53%

ROCE(HY)

Highest at 18.15%

NET SALES(Q)

Highest at CNY 1,424.23 MM

RAW MATERIAL COST(Y)

Fallen by -12.83% (YoY

CASH AND EQV(HY)

Highest at CNY 18,464.9 MM

DEBT-EQUITY RATIO (HY)

Lowest at -76.73 %

-11What is not working for the Company

INTEREST(HY)

At CNY 0.88 MM has Grown at 22.49%

OPERATING PROFIT MARGIN(Q)

Lowest at 22.69 %

Here's what is working for Montage Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 2,066.16 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

Highest at CNY 1,424.23 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 1,099.55 MM has Grown at 46.53%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Sales

At CNY 1,424.23 MM has Grown at 23.65%

over average net sales of the previous four periods of CNY 1,151.85 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 18,464.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -76.73 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -12.83% (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 Montage Technology Co., Ltd.

Interest

At CNY 0.88 MM has Grown at 22.49%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 22.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at CNY 0.31 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income