Northking Information Technology Co., Ltd. (002987) 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

Northking Information Technology Co., Ltd.

Why is Northking Information Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 18.90% and Operating profit at 3.69% over the last 5 years

With a growth in Net Profit of 72.81%, the company declared Very Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 419.77 MM
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -6.6% (YoY)

With ROE of 11.15%, it has a expensive valuation with a 6.74 Price to Book Value

Over the past year, while the stock has generated a return of 18.04%, its profits have fallen by -2.2%
At the current price, the company has a high dividend yield of 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Northking Information Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Northking Information Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Northking Information Technology Co., Ltd.

20.62%

1.82

62.40%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.90%

EBIT Growth (5y)

3.69%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

1.62

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

49.64%

Pledged Shares

Institutional Holding

ROCE (avg)

18.24%

ROE (avg)

12.81%

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

6.74

EV to EBIT

64.24

EV to EBITDA

57.17

EV to Capital Employed

7.55

EV to Sales

3.90

PEG Ratio

Dividend Yield

0.41%

ROCE (Latest)

11.75%

ROE (Latest)

11.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Bearish (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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 419.77 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -6.6% (YoY

NET SALES(Q)

Highest at CNY 1,252.14 MM

OPERATING PROFIT(Q)

Highest at CNY 121.13 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.67 %

PRE-TAX PROFIT(Q)

Highest at CNY 125.53 MM

NET PROFIT(Q)

Highest at CNY 124.62 MM

EPS(Q)

Highest at CNY 0.14

-3What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 82.39 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.01 times

Here's what is working for Northking Information Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 419.77 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 1,252.14 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 121.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 9.67 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 125.53 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 125.53 MM has Grown at 64.7%

over average net sales of the previous four periods of CNY 76.21 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 124.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 124.62 MM has Grown at 60.53%

over average net sales of the previous four periods of CNY 77.63 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -6.6% (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 Northking Information Technology Co., Ltd.

Inventory Turnover Ratio

Lowest at 82.39 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.01 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio