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 -4.15% and Operating profit at -19.81% over the last 5 years

Positive results in Sep 25

ROCE(HY) Highest at 4.16%
CASH AND EQV(HY) Highest at CNY 1,837.09 MM
DEBT-EQUITY RATIO (HY) Lowest at -45.78 %

With ROE of 3.06%, it has a very expensive valuation with a 4.56 Price to Book Value

Over the past year, while the stock has generated a return of 5.26%, 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

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.

5.26%

1.83

49.26%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.15%

EBIT Growth (5y)

-19.81%

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

149

Industry P/E

Price to Book Value

4.56

EV to EBIT

170.95

EV to EBITDA

67.09

EV to Capital Employed

7.73

EV to Sales

10.02

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

Bullish

Mildly Bearish

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

15What is working for the Company

ROCE(HY)

Highest at 4.16%

CASH AND EQV(HY)

Highest at CNY 1,837.09 MM

DEBT-EQUITY RATIO (HY)

Lowest at -45.78 %

NET SALES(Q)

Highest at CNY 205.98 MM

NET PROFIT(Q)

Highest at CNY 39.7 MM

EPS(Q)

Highest at CNY 0.03

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 143.73 MM

NET SALES(9M)

At CNY 590.65 MM has Grown at -11.86%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,977.32

RAW MATERIAL COST(Y)

Grown by 9.85% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.87 times

OPERATING PROFIT(Q)

Lowest at CNY 11.34 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.51 %

Here's what is working for Net263 Ltd.

Net Profit

At CNY 39.7 MM has Grown at 227.1%

over average net sales of the previous four periods of CNY 12.14 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 205.98 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 39.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 1,837.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -45.78 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Net263 Ltd.

Interest Coverage Ratio

Lowest at 3,977.32

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 143.73 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 11.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.51 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 5.87 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 9.85% (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