ScoreWhy is Perfect World Co., Ltd. ?
1
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)
2
Poor long term growth as Net Sales has grown by an annual rate of -7.36% and Operating profit at -186.87% over the last 5 years
3
With a growth in Net Sales of 6.61%, the company declared Very Positive results in Mar 25
- OPERATING CASH FLOW(Y) Highest at CNY 1,186.76 MM
- DEBT-EQUITY RATIO (HY) Lowest at -41.9 %
- NET SALES(Q) Highest at CNY 2,015.57 MM
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 29.85%, its profits have fallen by -137.9%
- At the current price, the company has a high dividend yield of 1.2
5
Market Beating Performance
- The stock has generated a return of 29.85% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Perfect World Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Perfect World Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Perfect World Co., Ltd.
12.79%
2.04
42.57%
China Shanghai Composite
15.19%
1.01
15.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-7.36%
EBIT Growth (5y)
-186.87%
EBIT to Interest (avg)
-1.97
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.50
Sales to Capital Employed (avg)
0.80
Tax Ratio
26.54%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.04%
ROE (avg)
5.23%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
4.81
EV to EBIT
-47.40
EV to EBITDA
-91.31
EV to Capital Employed
8.23
EV to Sales
4.63
PEG Ratio
NA
Dividend Yield
1.24%
ROCE (Latest)
-17.36%
ROE (Latest)
-10.73%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 1,186.76 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -41.9 %
NET SALES(Q)
Highest at CNY 2,015.57 MM
OPERATING PROFIT(Q)
Highest at CNY 233.77 MM
OPERATING PROFIT MARGIN(Q)
Highest at 11.6 %
PRE-TAX PROFIT(Q)
Highest at CNY 428.68 MM
NET PROFIT(Q)
Highest at CNY 300.73 MM
EPS(Q)
Highest at CNY 0.15
-11What is not working for the Company
NET PROFIT(HY)
At CNY -586.24 MM has Grown at -434.25%
ROCE(HY)
Lowest at -11.98%
RAW MATERIAL COST(Y)
Grown by 18.86% (YoY
Here's what is working for Perfect World Co., Ltd.
Pre-Tax Profit
At CNY 428.68 MM has Grown at 325.98%
over average net sales of the previous four periods of CNY -189.7 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Sales
At CNY 2,015.57 MM has Grown at 45.29%
over average net sales of the previous four periods of CNY 1,387.28 MMMOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Net Profit
At CNY 300.73 MM has Grown at 196.51%
over average net sales of the previous four periods of CNY -311.61 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Operating Cash Flow
Highest at CNY 1,186.76 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
Highest at CNY 2,015.57 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Operating Profit
Highest at CNY 233.77 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CNY MM)
Operating Profit Margin
Highest at 11.6 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at CNY 428.68 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 300.73 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.15
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Debt-Equity Ratio
Lowest at -41.9 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Perfect World Co., Ltd.
Raw Material Cost
Grown by 18.86% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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