Nancal Technology Co., Ltd. (603859) 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

Nancal Technology Co., Ltd.

Why is Nancal Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.97% and Operating profit at 18.86% over the last 5 years

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 245.89 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 3.37 times
INTEREST COVERAGE RATIO(Q) Lowest at 1,904.67

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 IT - Hardware)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nancal Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nancal Technology Co., Ltd.

78.98%

1.93

54.45%

China Shanghai Composite

21.43%

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)

8.81%

EBIT Growth (5y)

10.51%

EBIT to Interest (avg)

40.49

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.45

Tax Ratio

8.67%

Dividend Payout Ratio

9.73%

Pledged Shares

Institutional Holding

ROCE (avg)

10.51%

ROE (avg)

9.41%

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

3.88

EV to EBIT

48.29

EV to EBITDA

33.49

EV to Capital Employed

3.86

EV to Sales

8.11

PEG Ratio

5.85

Dividend Yield

0.15%

ROCE (Latest)

7.99%

ROE (Latest)

9.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -17.15% (YoY

-21What is not working for the Company

INTEREST(HY)

At CNY 5.49 MM has Grown at 34.87%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,544.72

OPERATING CASH FLOW(Y)

Lowest at CNY 181.54 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 17.79 %

PRE-TAX PROFIT(Q)

Lowest at CNY 73.72 MM

DEBT-EQUITY RATIO (HY)

Highest at 1.38 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.83 times

NET SALES(Q)

Lowest at CNY 331.18 MM

OPERATING PROFIT(Q)

Lowest at CNY 58.92 MM

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

Raw Material Cost

Fallen by -17.15% (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 Nancal Technology Co., Ltd.

Interest

At CNY 5.49 MM has Grown at 34.87%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,544.72 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 17.79 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 73.72 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 181.54 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 331.18 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 58.92 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Debt-Equity Ratio

Highest at 1.38 %

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

Debtors Turnover Ratio

Lowest at 0.83 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio