Newland Digital Technology Co., Ltd. (000997) 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

Newland Digital Technology Co., Ltd.

Why is Newland Digital Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.75% and Operating profit at 19.46% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY -378.29 MM
NET PROFIT(HY) At CNY 364.86 MM has Grown at -30.98%
INTEREST(HY) At CNY 9.93 MM has Grown at 5.52%

With ROE of 14.43%, it has a fair valuation with a 2.45 Price to Book Value

Over the past year, while the stock has generated a return of -37.34%, its profits have fallen by -10.4%
At the current price, the company has a high dividend yield of 1.2

Below par performance in long term as well as near term

Along with generating -37.34% 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 hold?

Overall Portfolio exposure to Newland Digital Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)

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

Is Newland Digital Technology Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Newland Digital Technology Co., Ltd.

-39.62%

0.68

38.11%

China Shanghai Composite

21.43%

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)

4.75%

EBIT Growth (5y)

19.46%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

1.00

Tax Ratio

7.72%

Dividend Payout Ratio

24.87%

Pledged Shares

Institutional Holding

ROCE (avg)

21.56%

ROE (avg)

10.64%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.45

EV to EBIT

11.62

EV to EBITDA

11.06

EV to Capital Employed

4.49

EV to Sales

1.50

PEG Ratio

Dividend Yield

1.22%

ROCE (Latest)

38.61%

ROE (Latest)

14.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

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

11What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -58.28 %

NET SALES(Q)

Highest at CNY 2,538.95 MM

CASH AND EQV(HY)

Highest at CNY 13,742.87 MM

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -378.29 MM

NET PROFIT(HY)

At CNY 364.86 MM has Grown at -30.98%

INTEREST(HY)

At CNY 9.93 MM has Grown at 5.52%

ROCE(HY)

Lowest at 13.39%

RAW MATERIAL COST(Y)

Grown by 23.66% (YoY

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

Net Sales

Highest at CNY 2,538.95 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at -58.28 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Net Sales

At CNY 2,538.95 MM has Grown at 15.96%

over average net sales of the previous four periods of CNY 2,189.53 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 13,742.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Newland Digital Technology Co., Ltd.

Net Profit

At CNY 364.86 MM has Grown at -30.98%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Interest

At CNY 9.93 MM has Grown at 5.52%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -378.29 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Raw Material Cost

Grown by 23.66% (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