Quectel Wireless Solutions Co. Ltd. (603236) 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

Quectel Wireless Solutions Co. Ltd.

Why is Quectel Wireless Solutions Co. Ltd. ?

The company has declared Positive results for the last 4 consecutive quarters

ROCE(HY) Highest at 23.15%
RAW MATERIAL COST(Y) Fallen by -9.44% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 4.89 times

With ROE of 19.43%, it has a expensive valuation with a 6.07 Price to Book Value

Over the past year, while the stock has generated a return of 0.80%, its profits have risen by 100.7% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Quectel Wireless Solutions Co. Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

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

Is Quectel Wireless Solutions Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Quectel Wireless Solutions Co. Ltd.

-12.58%

1.58

45.10%

China Shanghai Composite

23.91%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.13%

EBIT Growth (5y)

36.37%

EBIT to Interest (avg)

8.11

Debt to EBITDA (avg)

1.97

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

2.33

Tax Ratio

0.12%

Dividend Payout Ratio

20.76%

Pledged Shares

Institutional Holding

ROCE (avg)

7.27%

ROE (avg)

11.02%

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

3.09

EV to EBIT

31.24

EV to EBITDA

21.97

EV to Capital Employed

2.57

EV to Sales

0.92

PEG Ratio

11.47

Dividend Yield

0.81%

ROCE (Latest)

8.23%

ROE (Latest)

10.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

9What is working for the Company

NET SALES(Q)

Highest at CNY 6,749.24 MM

RAW MATERIAL COST(Y)

Fallen by -4.01% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 39.5 %

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -456.64 MM

INTEREST(Q)

At CNY 12.86 MM has Grown at 1,084.65%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,168.87

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.38 times

OPERATING PROFIT(Q)

Lowest at CNY 150.37 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.23 %

PRE-TAX PROFIT(Q)

Fallen at -37.33%

NET PROFIT(Q)

Fallen at -33.58%

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

Net Sales

Highest at CNY 6,749.24 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

At CNY 6,749.24 MM has Grown at 29.26%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at 39.5 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -4.01% (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 Quectel Wireless Solutions Co. Ltd.

Interest

At CNY 12.86 MM has Grown at 1,084.65%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,168.87

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY -456.64 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 150.37 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -37.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -33.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 5.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio