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

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 11.29% and Operating profit at -12.14% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

NET PROFIT(HY) At CNY 48.43 MM has Grown at -46.48%
INTEREST(HY) At CNY 0.21 MM has Grown at 110.13%
OPERATING CASH FLOW(Y) Lowest at CNY 220.65 MM

With ROE of 4.62%, it has a expensive valuation with a 3.07 Price to Book Value

Over the past year, while the stock has generated a return of -30.05%, its profits have fallen by -47.9%
At the current price, the company has a high dividend yield of 1.8

Below par performance in long term as well as near term

Along with generating -30.05% 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, Low Return

Absolute

Risk Adjusted

Volatility

Queclink Wireless Solutions Co., Ltd.

-27.13%

0.10

35.86%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.29%

EBIT Growth (5y)

-12.14%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

0.53

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

3.07

EV to EBIT

76.53

EV to EBITDA

49.31

EV to Capital Employed

5.82

EV to Sales

5.33

PEG Ratio

Dividend Yield

1.83%

ROCE (Latest)

7.61%

ROE (Latest)

4.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.82% (YoY

CASH AND EQV(HY)

Highest at CNY 2,101.53 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.48 times

-26What is not working for the Company

NET PROFIT(HY)

At CNY 48.43 MM has Grown at -46.48%

INTEREST(HY)

At CNY 0.21 MM has Grown at 110.13%

OPERATING CASH FLOW(Y)

Lowest at CNY 220.65 MM

NET SALES(HY)

At CNY 423.23 MM has Grown at -11.87%

ROCE(HY)

Lowest at 4.72%

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

Cash and Eqv

Highest at CNY 2,101.53 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 1.48 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 0.82% (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 Queclink Wireless Solutions Co., Ltd.

Net Profit

At CNY 48.43 MM has Grown at -46.48%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 0.21 MM has Grown at 110.13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 220.65 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 423.23 MM has Grown at -11.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)