North Electro-Optic Co., Ltd. (600184) 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

North Electro-Optic Co., Ltd.

Why is North Electro-Optic Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.47%

The company has been able to generate a Return on Capital Employed (avg) of 1.47% 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 -7.91% and Operating profit at -231.86% over the last 5 years

With a growth in Net Sales of 68.84%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 7 consecutive negative quarters
RAW MATERIAL COST(Y) Fallen by -46.26% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at -29.54 %
NET SALES(Q) Highest at CNY 555.81 MM

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 49.80%, its profits have fallen by -560.5%
At the current price, the company has a high dividend yield of 0

Market Beating performance in long term as well as near term

Along with generating 49.80% returns in the last 1 year, the stock has outperformed 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 North Electro-Optic Co., Ltd. should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

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

Is North Electro-Optic Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

North Electro-Optic Co., Ltd.

18.54%

2.16

50.31%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.91%

EBIT Growth (5y)

-231.86%

EBIT to Interest (avg)

-20.03

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.61

Tax Ratio

0.33%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.47%

ROE (avg)

2.14%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

4.33

EV to EBIT

-48.02

EV to EBITDA

-99.07

EV to Capital Employed

4.07

EV to Sales

7.27

PEG Ratio

Dividend Yield

ROCE (Latest)

-8.48%

ROE (Latest)

-8.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

30What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -46.26% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -29.54 %

NET SALES(Q)

Highest at CNY 555.81 MM

PRE-TAX PROFIT(Q)

Highest at CNY 9.78 MM

NET PROFIT(Q)

Highest at CNY 12.28 MM

EPS(Q)

Highest at CNY 0.02

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for North Electro-Optic Co., Ltd.

Pre-Tax Profit

At CNY 9.78 MM has Grown at 256.15%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 12.28 MM has Grown at 331.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 555.81 MM has Grown at 68.84%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 555.81 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 9.78 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 12.28 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -29.54 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -46.26% (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