Net263 Ltd. (002467) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Net263 Ltd.

Why is Net263 Ltd. ?

Poor Management Efficiency with a low ROCE of 3.54%

The company has been able to generate a Return on Capital Employed (avg) of 3.54% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -4.59% and Operating profit at -17.28% over the last 5 years

Flat results in Mar 25

NET SALES(Q) Lowest at CNY 187.86 MM
INTEREST COVERAGE RATIO(Q) Lowest at 3,433.58
OPERATING PROFIT(Q) Lowest at CNY 11.09 MM

With ROE of 3.06%, it has a very expensive valuation with a 4.54 Price to Book Value

Over the past year, while the stock has generated a return of 46.98%, its profits have risen by 167.4% ; the PEG ratio of the company is 0.9
At the current price, the company has a high dividend yield of 0.2

Market Beating Performance

The stock has generated a return of 46.98% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Net263 Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Net263 Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Net263 Ltd.

-26.97%

1.65

57.61%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.59%

EBIT Growth (5y)

-17.28%

EBIT to Interest (avg)

25.61

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.45

Sales to Capital Employed (avg)

0.44

Tax Ratio

16.50%

Dividend Payout Ratio

20.08%

Pledged Shares

Institutional Holding

ROCE (avg)

3.54%

ROE (avg)

4.40%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

148

Industry P/E

Price to Book Value

4.54

EV to EBIT

170.10

EV to EBITDA

66.75

EV to Capital Employed

7.69

EV to Sales

9.97

PEG Ratio

0.89

Dividend Yield

0.16%

ROCE (Latest)

4.52%

ROE (Latest)

3.06%

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

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

No Trend

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

14What is working for the Company

NET PROFIT(HY)

Higher at CNY 17.52 MM

ROCE(HY)

Highest at 3.05%

RAW MATERIAL COST(Y)

Fallen by -13.09% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -43.86 %

INVENTORY TURNOVER RATIO(HY)

Highest at 50.53%

-18What is not working for the Company

NET SALES(Q)

Lowest at CNY 187.86 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 3,433.58

OPERATING PROFIT(Q)

Lowest at CNY 11.09 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.32%

OPERATING PROFIT MARGIN(Q)

Lowest at 5.9 %

Here's what is working for Net263 Ltd.

Net Profit

At CNY 17.52 MM has Grown at 112.05%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Higher at CNY 17.52 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -43.86 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 50.53%

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 -13.09% (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 Net263 Ltd.

Net Sales

Lowest at CNY 187.86 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Sales

At CNY 187.86 MM has Fallen at -13.21%

over average net sales of the previous four periods of CNY 216.45 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 3,433.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 11.09 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.9 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 6.32%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio