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

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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 -8.67% and Operating profit at -246.15% over the last 5 years

With a growth in Net Sales of 13.5%, the company declared Very Positive results in Mar 25

The company has declared positive results in Jan 70 after 7 consecutive negative quarters
NET PROFIT(Q) At CNY 0.96 MM has Grown at 110.27%
RAW MATERIAL COST(Y) Fallen by -84.78% (YoY)
NET SALES(Q) At CNY 304.38 MM has Grown at 32.84%

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 60.55%, its profits have fallen by -560.5%
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 60.55% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%

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.

60.55%

1.91

51.65%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.67%

EBIT Growth (5y)

-246.15%

EBIT to Interest (avg)

-20.03

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.64

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

3.83

EV to EBIT

-42.60

EV to EBITDA

-87.89

EV to Capital Employed

3.61

EV to Sales

6.45

PEG Ratio

Dividend Yield

ROCE (Latest)

-8.48%

ROE (Latest)

-8.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

5What is working for the Company

NET PROFIT(Q)

At CNY 0.96 MM has Grown at 110.27%

RAW MATERIAL COST(Y)

Fallen by -84.78% (YoY

NET SALES(Q)

At CNY 304.38 MM has Grown at 32.84%

PRE-TAX PROFIT(Q)

At CNY -0.52 MM has Grown at 95.6%

-22What is not working for the Company

NET SALES(HY)

At CNY 556.64 MM has Grown at -39.88%

NET PROFIT(HY)

At CNY -206.24 MM has Grown at -1,394.93%

ROCE(HY)

Lowest at -8%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.97%

CASH AND EQV(HY)

Lowest at CNY 966.11 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.86%

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

Net Profit

At CNY 0.96 MM has Grown at 110.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 304.38 MM has Grown at 32.84%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -0.52 MM has Grown at 95.6%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -84.78% (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

Here's what is not working for North Electro-Optic Co., Ltd.

Debtors Turnover Ratio

Lowest at 0.97% and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Cash and Eqv

Lowest at CNY 966.11 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 1.86%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio