Perfect World Co., Ltd. (002624) 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

Perfect World Co., Ltd.

Why is Perfect World Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.04%

The company has been able to generate a Return on Capital Employed (avg) of 6.04% 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 -10.07% and Operating profit at -10.26% over the last 5 years

The company has declared negative results in Mar'2026 after 4 consecutive positive quarters

PRE-TAX PROFIT(Q) At CNY 131.46 MM has Fallen at -50.92%
NET PROFIT(Q) At CNY 100.85 MM has Fallen at -44.88%
NET SALES(Q) Lowest at CNY 1,171.17 MM

Below par performance in long term as well as near term

Along with generating -22.69% 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 Software Products)

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

Is Perfect World Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Perfect World Co., Ltd.

-22.69%

0.73

48.39%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-10.07%

EBIT Growth (5y)

-10.26%

EBIT to Interest (avg)

-1.97

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

0.82

Tax Ratio

26.54%

Dividend Payout Ratio

86.36%

Pledged Shares

Institutional Holding

ROCE (avg)

6.04%

ROE (avg)

5.23%

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

3.55

EV to EBIT

38.19

EV to EBITDA

29.01

EV to Capital Employed

5.59

EV to Sales

3.86

PEG Ratio

0.37

Dividend Yield

3.92%

ROCE (Latest)

14.64%

ROE (Latest)

6.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

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

12What is working for the Company

NET PROFIT(HY)

Higher at CNY 167.73 MM

ROCE(HY)

Highest at 7.44%

RAW MATERIAL COST(Y)

Fallen by -31.84% (YoY

-17What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 131.46 MM has Fallen at -50.92%

NET PROFIT(Q)

At CNY 100.85 MM has Fallen at -44.88%

NET SALES(Q)

Lowest at CNY 1,171.17 MM

OPERATING PROFIT(Q)

Lowest at CNY 102.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.71 %

Here's what is working for Perfect World Co., Ltd.

Raw Material Cost

Fallen by -31.84% (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 Perfect World Co., Ltd.

Net Sales

At CNY 1,171.17 MM has Fallen at -29.65%

over average net sales of the previous four periods of CNY 1,664.89 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 131.46 MM has Fallen at -50.92%

over average net sales of the previous four periods of CNY 267.84 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 100.85 MM has Fallen at -44.88%

over average net sales of the previous four periods of CNY 182.98 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 1,171.17 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 102.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.71 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales