Raisecom Technology Co., Ltd. (603803) 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

Raisecom Technology Co., Ltd.

Why is Raisecom Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.77%

The company has been able to generate a Return on Capital Employed (avg) of 1.77% 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 -9.03% and Operating profit at -202.17% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at CNY -97.93 MM
NET SALES(9M) At CNY 846 MM has Grown at -17.12%
CASH AND EQV(HY) Lowest at CNY 998.09 MM

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 -12.30%, its profits have risen by 37%

Below par performance in long term as well as near term

Along with generating -12.30% 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 Raisecom Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Raisecom Technology Co., Ltd.

50.68%

1.39

46.75%

China Shanghai Composite

15.17%

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)

-9.03%

EBIT Growth (5y)

-202.17%

EBIT to Interest (avg)

-15.46

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

0.70

Tax Ratio

0.49%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.77%

ROE (avg)

1.57%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.37

EV to EBIT

-22.61

EV to EBITDA

-30.80

EV to Capital Employed

2.47

EV to Sales

3.06

PEG Ratio

Dividend Yield

ROCE (Latest)

-10.92%

ROE (Latest)

-8.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

13What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -20.59% (YoY

OPERATING PROFIT(Q)

Highest at CNY -11.27 MM

OPERATING PROFIT MARGIN(Q)

Highest at -3.67 %

PRE-TAX PROFIT(Q)

Highest at CNY -4.65 MM

NET PROFIT(Q)

Highest at CNY -4.89 MM

EPS(Q)

Highest at CNY -0.01

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -97.93 MM

NET SALES(9M)

At CNY 846 MM has Grown at -17.12%

CASH AND EQV(HY)

Lowest at CNY 998.09 MM

DEBT-EQUITY RATIO (HY)

Highest at -7.66 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1 times

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

Operating Profit

Highest at CNY -11.27 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at -3.67 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY -4.65 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY -4.65 MM has Grown at 83.1%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -4.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY -4.89 MM has Grown at 82.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -20.59% (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 Raisecom Technology Co., Ltd.

Net Sales

At CNY 846 MM has Grown at -17.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY -97.93 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)

Cash and Eqv

Lowest at CNY 998.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -7.66 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 1 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio