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Montage Technology Co., Ltd.

  • Market Cap: Large Cap
  • Industry: Other Electrical Equipment
  • ISIN: CNE100003MN7
  • SHG: 688008
CNY
221.83
11.73 (5.58%)

Sep 22

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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. ?

1
Poor Management Efficiency with a low ROCE of 30.20%
  • The company has been able to generate a Return on Capital Employed (avg) of 30.20% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 28.47% and Operating profit at 27.12% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 10.53% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 28.47% and Operating profit at 27.12% over the last 5 years
4
The company has declared Positive results for the last 10 consecutive quarters
  • OPERATING CASH FLOW(Y) Highest at CNY 2,306.84 MM
  • DIVIDEND PAYOUT RATIO(Y) Highest at 21.11%
  • RAW MATERIAL COST(Y) Fallen by -2.85% (YoY)
5
With ROE of 10.70%, it has a very expensive valuation with a 16.60 Price to Book Value
  • Over the past year, while the stock has generated a return of 74.23%, its profits have risen by 41.5% ; the PEG ratio of the company is 3.7
  • At the current price, the company has a high dividend yield of 0.1
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Montage Technology Co., Ltd. should be less than 10%
  2. 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.
77.05%
4.03
78.22%
China Shanghai Composite
3.23%
0.23
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
28.47%
EBIT Growth (5y)
27.12%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.73
Sales to Capital Employed (avg)
0.32
Tax Ratio
7.92%
Dividend Payout Ratio
20.85%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
33.39%
ROE (avg)
10.53%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
155
Industry P/E
Price to Book Value
16.60
EV to EBIT
160.41
EV to EBITDA
150.76
EV to Capital Employed
79.27
EV to Sales
57.85
PEG Ratio
3.74
Dividend Yield
0.07%
ROCE (Latest)
49.42%
ROE (Latest)
10.70%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

26What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CNY 2,306.84 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 21.11%

RAW MATERIAL COST(Y)

Fallen by -2.85% (YoY

CASH AND EQV(HY)

Highest at CNY 34,781.71 MM

DEBT-EQUITY RATIO (HY)

Lowest at -83.12 %

DIVIDEND PER SHARE(HY)

Highest at CNY 7.96

NET SALES(Q)

Highest at CNY 1,874.78 MM

OPERATING PROFIT(Q)

Highest at CNY 725.87 MM

PRE-TAX PROFIT(Q)

Highest at CNY 985.75 MM

NET PROFIT(Q)

Highest at CNY 956.47 MM

EPS(Q)

Highest at CNY 0.94

-11What is not working for the Company
INTEREST(HY)

At CNY 1.36 MM has Grown at 49.67%

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.96 times

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

Operating Cash Flow
Highest at CNY 2,306.84 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 1,874.78 MM has Grown at 31.68%
over average net sales of the previous four periods of CNY 1,423.71 MM
MOJO Watch
Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales
Highest at CNY 1,874.78 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit
Highest at CNY 725.87 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit
Highest at CNY 985.75 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit
At CNY 985.75 MM has Grown at 62.47%
over average net sales of the previous four periods of CNY 606.72 MM
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit
Highest at CNY 956.47 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit
At CNY 956.47 MM has Grown at 64.08%
over average net sales of the previous four periods of CNY 582.92 MM
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS
Highest at CNY 0.94
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv
Highest at CNY 34,781.71 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio
Lowest at -83.12 %
in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share
Highest at CNY 7.96
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio
Highest at 21.11%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost
Fallen by -2.85% (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 1.36 MM has Grown at 49.67%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio
Lowest at 7.96 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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