New Guomai Digital Culture Co., Ltd. (600640) 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

New Guomai Digital Culture Co., Ltd.

Why is New Guomai Digital Culture Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of -11.39% and Operating profit at 10.69% over the last 5 years

INTEREST(HY) At CNY 0.68 MM has Grown at 464.98%
NET SALES(Q) At CNY 453.14 MM has Fallen at -14.36%
CASH AND EQV(HY) Lowest at CNY 2,670.38 MM

With ROE of 0.81%, it has a expensive valuation with a 2.72 Price to Book Value

Over the past year, while the stock has generated a return of -3.31%, its profits have risen by 423.9% ; the PEG ratio of the company is 0.8

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.31% returns

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 Media & Entertainment)

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

Is New Guomai Digital Culture Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

New Guomai Digital Culture Co., Ltd.

-3.31%

0.68

35.34%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-11.39%

EBIT Growth (5y)

10.69%

EBIT to Interest (avg)

-151.54

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.59

Tax Ratio

58.11%

Dividend Payout Ratio

47.12%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.51%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

334

Industry P/E

Price to Book Value

2.72

EV to EBIT

-300.07

EV to EBITDA

127.65

EV to Capital Employed

4.72

EV to Sales

4.30

PEG Ratio

0.79

Dividend Yield

0.07%

ROCE (Latest)

-1.57%

ROE (Latest)

0.81%

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

No Trend

OBV

Mildly Bearish

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

13What is working for the Company

NET PROFIT(HY)

Higher at CNY 8.99 MM

ROCE(HY)

Highest at 0.4%

RAW MATERIAL COST(Y)

Fallen by -11.2% (YoY

-16What is not working for the Company

INTEREST(HY)

At CNY 0.68 MM has Grown at 464.98%

NET SALES(Q)

At CNY 453.14 MM has Fallen at -14.36%

CASH AND EQV(HY)

Lowest at CNY 2,670.38 MM

OPERATING PROFIT(Q)

Lowest at CNY -13.14 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.9 %

PRE-TAX PROFIT(Q)

At CNY 12.57 MM has Fallen at -35.88%

Here's what is working for New Guomai Digital Culture Co., Ltd.

Net Profit

At CNY 8.99 MM has Grown at 130.83%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Higher at CNY 8.99 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)

Raw Material Cost

Fallen by -11.2% (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 New Guomai Digital Culture Co., Ltd.

Interest

At CNY 0.68 MM has Grown at 464.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 453.14 MM has Fallen at -14.36%

over average net sales of the previous four periods of CNY 529.12 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -13.14 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.9 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 12.57 MM has Fallen at -35.88%

over average net sales of the previous four periods of CNY 19.6 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 2,670.38 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents