Netac Technology Co., Ltd. (300042) 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

Netac Technology Co., Ltd.

Why is Netac Technology Co., Ltd. ?

With a growth in Net Sales of 109.5%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 4 consecutive quarters
ROCE(HY) Highest at 11.3%
NET SALES(Q) Highest at CNY 486.15 MM
OPERATING PROFIT(Q) Highest at CNY 85.97 MM

Market Beating performance in long term as well as near term

Along with generating 178.65% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Netac Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

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

Is Netac Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Netac Technology Co., Ltd.

46.15%

2.98

70.71%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.69%

EBIT Growth (5y)

8.16%

EBIT to Interest (avg)

-1.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.51

Sales to Capital Employed (avg)

0.83

Tax Ratio

6.73%

Dividend Payout Ratio

51.66%

Pledged Shares

Institutional Holding

ROCE (avg)

4.36%

ROE (avg)

2.81%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

117

Industry P/E

Price to Book Value

12.34

EV to EBIT

116.69

EV to EBITDA

106.33

EV to Capital Employed

14.80

EV to Sales

9.25

PEG Ratio

0.58

Dividend Yield

0.10%

ROCE (Latest)

12.68%

ROE (Latest)

10.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Bullish

OBV

Mildly Bearish

Mildly 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

35What is working for the Company

NET SALES(Q)

At CNY 480.1 MM has Grown at 95.95%

PRE-TAX PROFIT(Q)

At CNY 25.26 MM has Grown at 762.22%

NET PROFIT(Q)

At CNY 13.19 MM has Grown at 356.07%

ROCE(HY)

Highest at 13.06%

INVENTORY TURNOVER RATIO(HY)

Highest at 3.66 times

RAW MATERIAL COST(Y)

Fallen by -83.84% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 10.08 times

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -253.52 MM

DEBT-EQUITY RATIO (HY)

Highest at -19.67 %

INTEREST(Q)

Highest at CNY 1.92 MM

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

Net Sales

At CNY 480.1 MM has Grown at 95.95%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 25.26 MM has Grown at 762.22%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 13.19 MM has Grown at 356.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 3.66 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 10.08 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -83.84% (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 Netac Technology Co., Ltd.

Interest

At CNY 1.92 MM has Grown at 24.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -253.52 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 1.92 MM

in the last five periods and Increased by 24.33% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -19.67 %

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