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

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 0.71% and Operating profit at -54.25% over the last 5 years

Positive results in Mar 26

PRE-TAX PROFIT(Q) At CNY 9.14 MM has Grown at 1,709.3%
NET PROFIT(Q) At CNY 9.27 MM has Grown at 4,307.55%
RAW MATERIAL COST(Y) Fallen by -18.09% (YoY)

With ROE of 2.81%, it has a very expensive valuation with a 5.80 Price to Book Value

Over the past year, while the stock has generated a return of -30.62%, its profits have risen by 55.5%

Below par performance in long term as well as near term

Along with generating -30.62% 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 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, Medium Return

Absolute

Risk Adjusted

Volatility

NOVA Technology Corp. Ltd.

-30.62%

0.24

71.46%

China Shanghai Composite

20.96%

1.56

13.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.71%

EBIT Growth (5y)

-54.25%

EBIT to Interest (avg)

70.30

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.76

Sales to Capital Employed (avg)

0.70

Tax Ratio

8.37%

Dividend Payout Ratio

86.28%

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

207

Industry P/E

Price to Book Value

5.80

EV to EBIT

203.24

EV to EBITDA

83.21

EV to Capital Employed

22.78

EV to Sales

7.36

PEG Ratio

Dividend Yield

ROCE (Latest)

11.21%

ROE (Latest)

2.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

8What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 9.14 MM has Grown at 1,709.3%

NET PROFIT(Q)

At CNY 9.27 MM has Grown at 4,307.55%

RAW MATERIAL COST(Y)

Fallen by -18.09% (YoY

-5What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 17.59 times

OPERATING PROFIT(Q)

Lowest at CNY 8.85 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.42 %

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

Pre-Tax Profit

At CNY 9.14 MM has Grown at 1,709.3%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 9.27 MM has Grown at 4,307.55%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -18.09% (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.

Inventory Turnover Ratio

Lowest at 17.59 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

Operating Profit

Lowest at CNY 8.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.42 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales