Newonder Special Electric Co. Ltd. () 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

Newonder Special Electric Co. Ltd.

Why is Newonder Special Electric Co. Ltd. ?

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)

Poor long term growth as Net Sales has grown by an annual rate of 1.36% and Operating profit at -154.16% over the last 5 years

Positive results in Mar 26

NET PROFIT(HY) Higher at CNY -4.28 MM
DEBT-EQUITY RATIO (HY) Lowest at -58.25 %
NET SALES(Q) At CNY 126.2 MM has Grown at 43.14%

With ROE of 1.16%, it has a fair valuation with a 2.75 Price to Book Value

Over the past year, while the stock has generated a return of 79.66%, its profits have risen by 130.8% ; the PEG ratio of the company is 1.8

Market Beating Performance

The stock has generated a return of 79.66% in the last 1 year, much higher than market (China Shanghai Composite) returns of 17.97%

Real-Time Research Report

Verdict Report

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.

79.66%

1.34

79.33%

China Shanghai Composite

17.97%

1.33

13.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.36%

EBIT Growth (5y)

-154.16%

EBIT to Interest (avg)

33.44

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.26

Tax Ratio

5.49%

Dividend Payout Ratio

46.59%

Pledged Shares

Institutional Holding

ROCE (avg)

7.12%

ROE (avg)

5.30%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

238

Industry P/E

Price to Book Value

2.75

EV to EBIT

-433.38

EV to EBITDA

371.23

EV to Capital Employed

5.22

EV to Sales

7.37

PEG Ratio

1.82

Dividend Yield

ROCE (Latest)

-1.20%

ROE (Latest)

1.16%

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

Mildly Bearish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

19What is working for the Company

NET PROFIT(HY)

Higher at CNY -4.28 MM

DEBT-EQUITY RATIO (HY)

Lowest at -58.25 %

NET SALES(Q)

At CNY 126.2 MM has Grown at 43.14%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.28 times

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 19.83 MM

PRE-TAX PROFIT(Q)

At CNY -4.16 MM has Fallen at -152.73%

NET PROFIT(Q)

At CNY -4.22 MM has Fallen at -154.9%

RAW MATERIAL COST(Y)

Grown by 16.05% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.23 times

OPERATING PROFIT(Q)

Lowest at CNY -4.89 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.88 %

Here's what is working for Newonder Special Electric Co. Ltd.

Net Sales

At CNY 126.2 MM has Grown at 43.14%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at -58.25 % 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

Debtors Turnover Ratio

Highest at 1.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Newonder Special Electric Co. Ltd.

Pre-Tax Profit

At CNY -4.16 MM has Fallen at -152.73%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -4.22 MM has Fallen at -154.9%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 19.83 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY -4.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.88 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 2.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 16.05% (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