Queclink Wireless Solutions Co., Ltd. (300590) 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

Queclink Wireless Solutions Co., Ltd.

Why is Queclink Wireless Solutions Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.34% and Operating profit at -12.05% over the last 5 years

With a fall in Net Sales of -23.44%, the company declared Very Negative results in Jun 25

The company has declared negative results for the last 2 consecutive quarters
NET SALES(9M) At CNY 627.1 MM has Grown at -25.18%
NET PROFIT(9M) At CNY 50.75 MM has Grown at -60.45%
PRE-TAX PROFIT(Q) At CNY 20.07 MM has Fallen at -68.8%

With ROE of 4.62%, it has a expensive valuation with a 2.27 Price to Book Value

Over the past year, while the stock has generated a return of -18.29%, its profits have fallen by -47.9%
At the current price, the company has a high dividend yield of 2.5

Below par performance in long term as well as near term

Along with generating -18.29% 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 Telecom - Equipment & Accessories)

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

Is Queclink Wireless Solutions Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Queclink Wireless Solutions Co., Ltd.

-16.35%

0.44

45.07%

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)

9.34%

EBIT Growth (5y)

-12.05%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

0.54

Tax Ratio

5.85%

Dividend Payout Ratio

63.29%

Pledged Shares

Institutional Holding

ROCE (avg)

14.08%

ROE (avg)

8.30%

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

2.27

EV to EBIT

52.06

EV to EBITDA

33.54

EV to Capital Employed

3.96

EV to Sales

3.63

PEG Ratio

Dividend Yield

2.48%

ROCE (Latest)

7.61%

ROE (Latest)

4.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 2,143.95 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.42%

-32What is not working for the Company

NET SALES(9M)

At CNY 627.1 MM has Grown at -25.18%

NET PROFIT(9M)

At CNY 50.75 MM has Grown at -60.45%

PRE-TAX PROFIT(Q)

At CNY 20.07 MM has Fallen at -68.8%

INTEREST(HY)

At CNY 0.13 MM has Grown at 7.86%

ROCE(HY)

Lowest at 5.07%

INTEREST COVERAGE RATIO(Q)

Lowest at 22,729.45

RAW MATERIAL COST(Y)

Grown by 12.14% (YoY

Here's what is working for Queclink Wireless Solutions Co., Ltd.

Cash and Eqv

Highest at CNY 2,143.95 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 1.42%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Queclink Wireless Solutions Co., Ltd.

Net Sales

At CNY 202.14 MM has Fallen at -23.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 20.07 MM has Fallen at -68.8%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 19.38 MM has Fallen at -66.8%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 22,729.45

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 0.13 MM has Grown at 7.86%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 12.14% (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