Comparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Newborn Town, Inc. ?
1
High Management Efficiency with a high ROE of 33.61%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 73.67
3
Healthy long term growth as Net Sales has grown by an annual rate of 75.01% and Operating profit at 84.39%
4
The company has declared Positive results for the last 6 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at HKD 1,955.16 MM
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
- PRE-TAX PROFIT(Q) Highest at HKD 430.24 MM
5
With ROE of 52.01%, it has a Attractive valuation with a 10.59 Price to Book Value
- Over the past year, while the stock has generated a return of 170.62%, its profits have risen by 28.1% ; the PEG ratio of the company is 0.7
How much should you buy?
- Overall Portfolio exposure to Newborn Town, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Newborn Town, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Newborn Town, Inc.
167.18%
2.47
66.75%
Hang Seng Hong Kong
27.36%
1.03
25.88%
Quality key factors
Factor
Value
Sales Growth (5y)
75.01%
EBIT Growth (5y)
84.39%
EBIT to Interest (avg)
73.67
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-1.46
Sales to Capital Employed (avg)
3.27
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
33.61%
Valuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
10.59
EV to EBIT
19.08
EV to EBITDA
16.85
EV to Capital Employed
-19.84
EV to Sales
2.71
PEG Ratio
0.72
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
52.01%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
Not enough Data to analyse Financial Trend
Not enough Data to analyse Financial Trend
Here's what is working for Newborn Town, Inc.
Operating Cash Flow
Highest at HKD 1,955.16 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (HKD MM)
Pre-Tax Profit
Highest at HKD 430.24 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (HKD MM)
Net Sales
Highest at HKD 3,058.74 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (HKD MM)
Net Sales
At HKD 3,058.74 MM has Grown at 46.45%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (HKD MM)
Net Profit
Highest at HKD 271.71 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (HKD MM)
Cash and Eqv
Highest at HKD 2,436.26 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -143.14 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -29.81% (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






