Why is People.cn Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -0.08% and Operating profit at -9.50% over the last 5 years
2
Negative results in Mar 25
- NET PROFIT(HY) At CNY 146.43 MM has Grown at -35.34%
- OPERATING CASH FLOW(Y) Lowest at CNY 400.23 MM
- ROCE(HY) Lowest at 5.81%
3
With ROE of 5.60%, it has a very expensive valuation with a 5.90 Price to Book Value
- Over the past year, while the stock has generated a return of -22.07%, its profits have fallen by -32.3%
- At the current price, the company has a high dividend yield of 0.7
4
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.07% returns
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 People.cn Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
People.cn Co., Ltd.
-22.07%
-0.29
27.85%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
-0.08%
EBIT Growth (5y)
-9.50%
EBIT to Interest (avg)
28.26
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.76
Sales to Capital Employed (avg)
0.55
Tax Ratio
18.96%
Dividend Payout Ratio
69.77%
Pledged Shares
0
Institutional Holding
0.03%
ROCE (avg)
36.38%
ROE (avg)
7.88%
Valuation Key Factors 
Factor
Value
P/E Ratio
105
Industry P/E
Price to Book Value
5.90
EV to EBIT
104.73
EV to EBITDA
56.48
EV to Capital Employed
25.69
EV to Sales
9.10
PEG Ratio
NA
Dividend Yield
0.68%
ROCE (Latest)
24.53%
ROE (Latest)
5.60%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -9.61% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 4.56%
PRE-TAX PROFIT(Q)
At CNY -0.45 MM has Grown at 96.06%
-14What is not working for the Company
NET PROFIT(HY)
At CNY 146.43 MM has Grown at -35.34%
OPERATING CASH FLOW(Y)
Lowest at CNY 400.23 MM
ROCE(HY)
Lowest at 5.81%
INVENTORY TURNOVER RATIO(HY)
Lowest at 4.77%
NET SALES(Q)
Lowest at CNY 300.67 MM
OPERATING PROFIT(Q)
Lowest at CNY -33.3 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -11.08 %
Here's what is working for People.cn Co., Ltd.
Pre-Tax Profit
At CNY -0.45 MM has Grown at 96.06%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Debtors Turnover Ratio
Highest at 4.56%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -9.61% (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 People.cn Co., Ltd.
Net Profit
At CNY 146.43 MM has Grown at -35.34%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Inventory Turnover Ratio
Lowest at 4.77% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Operating Cash Flow
Lowest at CNY 400.23 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Sales
Lowest at CNY 300.67 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY -33.3 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at -11.08 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Non Operating Income
Highest at CNY 20.98 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






