NOVA Technology Corp. 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

NOVA Technology Corp. Ltd.

Why is NOVA Technology Corp. Ltd. ?

Poor Management Efficiency with a low ROCE of 59.35%

The company has been able to generate a Return on Capital Employed (avg) of 59.35% 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 2.05% and Operating profit at 19.76% over the last 5 years

RAW MATERIAL COST(Y) Fallen by -37.63% (YoY)
PRE-TAX PROFIT(Q) At CNY -0.57 MM has Grown at 77.93%
NET PROFIT(Q) At CNY -0.22 MM has Grown at 86.78%

With ROE of 1.25%, it has a very expensive valuation with a 3.24 Price to Book Value

Over the past year, while the stock has generated a return of 51.22%, its profits have fallen by -25.8%

Market Beating Performance

The stock has generated a return of 51.22% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NOVA Technology Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Services)

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

Is NOVA Technology Corp. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

NOVA Technology Corp. Ltd.

18.91%

0.69

72.81%

China Shanghai Composite

14.61%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.05%

EBIT Growth (5y)

19.76%

EBIT to Interest (avg)

70.30

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.76

Sales to Capital Employed (avg)

0.71

Tax Ratio

8.37%

Dividend Payout Ratio

50.72%

Pledged Shares

Institutional Holding

ROCE (avg)

59.35%

ROE (avg)

4.81%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

258

Industry P/E

Price to Book Value

3.24

EV to EBIT

265.77

EV to EBITDA

42.99

EV to Capital Employed

10.14

EV to Sales

3.61

PEG Ratio

Dividend Yield

ROCE (Latest)

3.81%

ROE (Latest)

1.25%

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

Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -37.63% (YoY

PRE-TAX PROFIT(Q)

At CNY -0.57 MM has Grown at 77.93%

NET PROFIT(Q)

At CNY -0.22 MM has Grown at 86.78%

-30What is not working for the Company

INTEREST(HY)

At CNY 0.82 MM has Grown at 75.61%

OPERATING CASH FLOW(Y)

Lowest at CNY -239.2 MM

NET PROFIT(HY)

At CNY 9.84 MM has Grown at -42.8%

ROCE(HY)

Lowest at 2.46%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.45%

NET SALES(Q)

Lowest at CNY 131.11 MM

OPERATING PROFIT(Q)

Lowest at CNY -0.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.46 %

Here's what is working for NOVA Technology Corp. Ltd.

Pre-Tax Profit

At CNY -0.57 MM has Grown at 77.93%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -0.22 MM has Grown at 86.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -37.63% (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 NOVA Technology Corp. Ltd.

Interest

At CNY 0.82 MM has Grown at 75.61%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 131.11 MM has Fallen at -23.36%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY -239.2 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)

Net Sales

Lowest at CNY 131.11 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -0.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 3.45%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio