Offcn Education Technology Co., Ltd. (002607) 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

Offcn Education Technology Co., Ltd.

Why is Offcn Education Technology Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 12.80%

Poor long term growth as Net Sales has grown by an annual rate of -22.61% and Operating profit at -18.13% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a fall in Net Sales of -4.61%, the company declared Very Negative results in Mar 25

NET SALES(Q) At CNY 571.16 MM has Fallen at -12%
INTEREST(Q) At CNY 35.4 MM has Grown at 38.31%
INTEREST COVERAGE RATIO(Q) Lowest at 310.01

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -22.95% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Miscellaneous)

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

Is Offcn Education Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Offcn Education Technology Co., Ltd.

-28.87%

1.39

42.62%

China Shanghai Composite

14.77%

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)

-22.61%

EBIT Growth (5y)

-18.13%

EBIT to Interest (avg)

-1.13

Debt to EBITDA (avg)

1.16

Net Debt to Equity (avg)

2.04

Sales to Capital Employed (avg)

1.32

Tax Ratio

42.62%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

12.80%

ROE (avg)

14.20%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

118

Industry P/E

Price to Book Value

19.78

EV to EBIT

39.48

EV to EBITDA

21.42

EV to Capital Employed

6.83

EV to Sales

7.49

PEG Ratio

0.68

Dividend Yield

ROCE (Latest)

17.29%

ROE (Latest)

16.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 496.55 MM

NET PROFIT(HY)

At CNY 57.41 MM has Grown at 115.57%

ROCE(HY)

Highest at 19.92%

RAW MATERIAL COST(Y)

Fallen by -19.92% (YoY

-24What is not working for the Company

NET SALES(Q)

At CNY 571.16 MM has Fallen at -12%

INTEREST(Q)

At CNY 35.4 MM has Grown at 38.31%

INTEREST COVERAGE RATIO(Q)

Lowest at 310.01

CASH AND EQV(HY)

Lowest at CNY 423.78 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.8%

OPERATING PROFIT(Q)

Lowest at CNY 109.73 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.21 %

Here's what is working for Offcn Education Technology Co., Ltd.

Net Profit

At CNY 57.41 MM has Grown at 115.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 496.55 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)

Net Profit

Higher at CNY 57.41 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -19.92% (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 Offcn Education Technology Co., Ltd.

Net Sales

At CNY 571.16 MM has Fallen at -12%

over average net sales of the previous four periods of CNY 649.02 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 35.4 MM has Grown at 38.31%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 310.01

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 109.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 19.21 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 423.78 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 11.8%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio