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Nancal Technology Co., Ltd.

  • Market Cap: Mid Cap
  • Industry: IT - Hardware
  • ISIN: CNE1000030F6
  • SHG: 603859
CNY
40.40
1.35 (3.46%)

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
Nancal Technology Co., Ltd.

Why is Nancal Technology Co., Ltd. ?

1
Poor Management Efficiency with a low ROCE of 10.51%
  • The company has been able to generate a Return on Capital Employed (avg) of 10.51% 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 8.81% and Operating profit at 10.51% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 9.41% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 8.81% and Operating profit at 10.51% over the last 5 years
4
The company has declared Negative results for the last 4 consecutive quarters
  • OPERATING CASH FLOW(Y) Lowest at CNY 122.41 MM
  • ROCE(HY) Lowest at 5.84%
  • INTEREST(Q) At CNY 3.21 MM has Grown at 38.59%
5
With ROE of 9.39%, it has a fair valuation with a 3.63 Price to Book Value
  • Over the past year, while the stock has generated a return of -12.35%, its profits have risen by 7.1% ; the PEG ratio of the company is 5.5
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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.
-10.3%
1.42
58.41%
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)
8.81%
EBIT Growth (5y)
10.51%
EBIT to Interest (avg)
39.53
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
6.24%
Dividend Payout Ratio
9.73%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.07%
ROE (avg)
9.41%
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
39
Industry P/E
Price to Book Value
3.63
EV to EBIT
45.22
EV to EBITDA
31.36
EV to Capital Employed
3.61
EV to Sales
7.59
PEG Ratio
5.48
Dividend Yield
0.16%
ROCE (Latest)
7.99%
ROE (Latest)
9.39%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
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

3What is working for the Company
RAW MATERIAL COST(Y)

Fallen by -7.47% (YoY

CASH AND EQV(HY)

Highest at CNY 2,081.94 MM

DEBT-EQUITY RATIO (HY)

Lowest at -20.26 %

-19What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at CNY 122.41 MM

ROCE(HY)

Lowest at 5.84%

INTEREST(Q)

At CNY 3.21 MM has Grown at 38.59%

PRE-TAX PROFIT(Q)

Lowest at CNY 70.58 MM

NET PROFIT(Q)

Lowest at CNY 45.84 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.77 times

EPS(Q)

Lowest at CNY 0.17

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

Cash and Eqv
Highest at CNY 2,081.94 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio
Lowest at -20.26 %
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 -7.47% (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 3.21 MM has Grown at 38.59%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit
Lowest at CNY 70.58 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)

Net Profit
Lowest at CNY 45.84 MM and Fallen
In each period in the last five periods
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow
Lowest at CNY 122.41 MM
in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

EPS
Lowest at CNY 0.17
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio
Lowest at 0.77 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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