Qiming Information Technology Co., Ltd. (002232) 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

Qiming Information Technology Co., Ltd.

Why is Qiming Information Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 10.40%

The company has been able to generate a Return on Capital Employed (avg) of 10.40% 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 -12.22% and Operating profit at -25.16% over the last 5 years

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 68.56 MM
ROCE(HY) Highest at 3.42%
RAW MATERIAL COST(Y) Fallen by -808.38% (YoY)

With ROE of 3.37%, it has a expensive valuation with a 4.22 Price to Book Value

Over the past year, while the stock has generated a return of -12.10%, its profits have risen by 895% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.2

Below par performance in long term as well as near term

Along with generating -12.10% 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 Qiming Information Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Qiming Information Technology Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Qiming Information Technology Co., Ltd.

-100.0%

0.66

40.11%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-12.22%

EBIT Growth (5y)

-25.16%

EBIT to Interest (avg)

32.53

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.51

Sales to Capital Employed (avg)

0.69

Tax Ratio

1.09%

Dividend Payout Ratio

30.15%

Pledged Shares

Institutional Holding

ROCE (avg)

10.40%

ROE (avg)

3.79%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

125

Industry P/E

Price to Book Value

4.22

EV to EBIT

164.58

EV to EBITDA

60.87

EV to Capital Employed

7.36

EV to Sales

6.36

PEG Ratio

0.14

Dividend Yield

0.23%

ROCE (Latest)

4.47%

ROE (Latest)

3.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 68.56 MM

ROCE(HY)

Highest at 3.42%

RAW MATERIAL COST(Y)

Fallen by -808.38% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.57 times

NET SALES(Q)

At CNY 190.09 MM has Grown at 40.46%

PRE-TAX PROFIT(Q)

At CNY 0.27 MM has Grown at 101.87%

NET PROFIT(Q)

At CNY 0.07 MM has Grown at 100.45%

-3What is not working for the Company

NET SALES(9M)

At CNY 634.13 MM has Grown at -9.22%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.21 times

Here's what is working for Qiming Information Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 68.56 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 190.09 MM has Grown at 40.46%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 0.27 MM has Grown at 101.87%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 0.07 MM has Grown at 100.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 5.57 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -808.38% (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 Qiming Information Technology Co., Ltd.

Debtors Turnover Ratio

Lowest at 1.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at CNY 9.81 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income