Why is Newonder Special Electric Co. Ltd. ?
1
Poor Management Efficiency with a low ROCE of 7.12%
- The company has been able to generate a Return on Capital Employed (avg) of 7.12% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -3.75% and Operating profit at -192.58% over the last 5 years
3
With a growth in Net Sales of 13.4%, the company declared Very Positive results in Mar 25
- The company has declared positive results in Jan 70 after 7 consecutive negative quarters
- PRE-TAX PROFIT(Q) At CNY 7.9 MM has Grown at 550.53%
- DEBT-EQUITY RATIO (HY) Lowest at -40.41 %
- NET PROFIT(Q) At CNY 7.68 MM has Grown at 97.39%
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 115.42%, its profits have fallen by -651.8%
5
Market Beating performance in long term as well as near term
- Along with generating 115.42% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Newonder Special Electric Co. Ltd. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Newonder Special Electric Co. Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Newonder Special Electric Co. Ltd.
89.09%
2.05
70.39%
China Shanghai Composite
12.36%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
-3.75%
EBIT Growth (5y)
-192.58%
EBIT to Interest (avg)
33.44
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
0.27
Tax Ratio
5.49%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.12%
ROE (avg)
5.30%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.44
EV to EBIT
-16.94
EV to EBITDA
-23.95
EV to Capital Employed
2.01
EV to Sales
3.30
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-11.85%
ROE (Latest)
-3.68%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
Bullish
Technical Movement
5What is working for the Company
PRE-TAX PROFIT(Q)
At CNY 7.9 MM has Grown at 550.53%
DEBT-EQUITY RATIO
(HY)
Lowest at -40.41 %
NET PROFIT(Q)
At CNY 7.68 MM has Grown at 97.39%
-13What is not working for the Company
NET PROFIT(HY)
At CNY -50.59 MM has Grown at -617.31%
ROCE(HY)
Lowest at -2.81%
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.67%
RAW MATERIAL COST(Y)
Grown by 8.71% (YoY
Here's what is working for Newonder Special Electric Co. Ltd.
Pre-Tax Profit
At CNY 7.9 MM has Grown at 550.53%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 7.68 MM has Grown at 97.39%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Debt-Equity Ratio
Lowest at -40.41 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Newonder Special Electric Co. Ltd.
Inventory Turnover Ratio
Lowest at 3.67% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 8.71% (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






