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

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 -2.84% and Operating profit at -214.85% over the last 5 years

Negative results in Mar 26

NET PROFIT(HY) At CNY -358.33 MM has Grown at -2,144.82%
OPERATING CASH FLOW(Y) Lowest at CNY 100.59 MM
ROCE(HY) Lowest at -18%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -6.77%, its profits have fallen by -568.8%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -6.77% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Telecom - Equipment & Accessories)

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

Is Net263 Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Net263 Ltd.

-9.09%

1.09

50.64%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.84%

EBIT Growth (5y)

-214.85%

EBIT to Interest (avg)

25.61

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.45

Sales to Capital Employed (avg)

0.46

Tax Ratio

16.50%

Dividend Payout Ratio

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

NA (Loss Making)

Industry P/E

Price to Book Value

4.54

EV to EBIT

-25.30

EV to EBITDA

-32.12

EV to Capital Employed

6.37

EV to Sales

8.04

PEG Ratio

Dividend Yield

ROCE (Latest)

-25.19%

ROE (Latest)

-18.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

6What is working for the Company

NET SALES(Q)

Highest at CNY 208.49 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 55.84 times

PRE-TAX PROFIT(Q)

At CNY 4.14 MM has Grown at 106.95%

NET PROFIT(Q)

At CNY -12.91 MM has Grown at 80.99%

-20What is not working for the Company

NET PROFIT(HY)

At CNY -358.33 MM has Grown at -2,144.82%

OPERATING CASH FLOW(Y)

Lowest at CNY 100.59 MM

ROCE(HY)

Lowest at -18%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.82 times

RAW MATERIAL COST(Y)

Grown by 14.97% (YoY

CASH AND EQV(HY)

Lowest at CNY 1,158.43 MM

DEBT-EQUITY RATIO (HY)

Highest at -32.96 %

Here's what is working for Net263 Ltd.

Net Sales

Highest at CNY 208.49 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 4.14 MM has Grown at 106.95%

over average net sales of the previous four periods of CNY -59.61 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -12.91 MM has Grown at 80.99%

over average net sales of the previous four periods of CNY -67.89 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 55.84 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Net263 Ltd.

Operating Cash Flow

Lowest at CNY 100.59 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Lowest at 4.82 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Cash and Eqv

Lowest at CNY 1,158.43 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -32.96 %

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

Raw Material Cost

Grown by 14.97% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales