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 13.48% and Operating profit at -0.35% over the last 5 years

Negative results in Mar 26

ROCE(HY) Lowest at 10.42%
INVENTORY TURNOVER RATIO(HY) Lowest at 63.33 times
NET SALES(Q) Lowest at CNY 1,146.68 MM

Below par performance in long term as well as near term

Along with generating -5.54% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Northking Information Technology Co., Ltd.

-13.9%

1.02

53.06%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.48%

EBIT Growth (5y)

-0.35%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

1.63

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

46.05%

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

4.20

EV to EBIT

40.48

EV to EBITDA

37.87

EV to Capital Employed

5.34

EV to Sales

2.45

PEG Ratio

Dividend Yield

0.59%

ROCE (Latest)

13.20%

ROE (Latest)

10.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 409.89 MM

CASH AND EQV(HY)

Highest at CNY 2,154.34 MM

DEBT-EQUITY RATIO (HY)

Lowest at -26.13 %

DEBTORS TURNOVER RATIO(HY)

Highest at 2.17 times

-17What is not working for the Company

ROCE(HY)

Lowest at 10.42%

INVENTORY TURNOVER RATIO(HY)

Lowest at 63.33 times

NET SALES(Q)

Lowest at CNY 1,146.68 MM

OPERATING PROFIT(Q)

Lowest at CNY 16.73 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.46 %

PRE-TAX PROFIT(Q)

Lowest at CNY 22.35 MM

NET PROFIT(Q)

Lowest at CNY 25.12 MM

EPS(Q)

Lowest at CNY 0.02

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

Operating Cash Flow

Highest at CNY 409.89 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 2,154.34 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -26.13 %

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 2.17 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 Northking Information Technology Co., Ltd.

Pre-Tax Profit

At CNY 22.35 MM has Fallen at -72.73%

over average net sales of the previous four periods of CNY 81.97 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 25.12 MM has Fallen at -69.31%

over average net sales of the previous four periods of CNY 81.85 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 63.33 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at CNY 1,146.68 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 16.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 22.35 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 25.12 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)