Shanghai Amarsoft Information & Technology Co., Ltd. (300380) 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

Shanghai Amarsoft Information & Technology Co., Ltd.

Why is Shanghai Amarsoft Information & Technology Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 11.50% and Operating profit at -18.49% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 3.60% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.50% and Operating profit at -18.49% over the last 5 years

The company has declared Positive results for the last 6 consecutive quarters

NET PROFIT(HY) Higher at CNY 11.72 MM
ROCE(HY) Highest at 3.77%
RAW MATERIAL COST(Y) Fallen by -9.48% (YoY)

With ROE of 6.02%, it has a expensive valuation with a 15.68 Price to Book Value

Over the past year, while the stock has generated a return of -15.86%, its profits have risen by 222.6% ; the PEG ratio of the company is 1.2
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -15.86% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanghai Amarsoft Information & Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Shanghai Amarsoft Information & Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Amarsoft Information & Technology Co., Ltd.

-40.39%

3.24

65.54%

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)

11.50%

EBIT Growth (5y)

-18.49%

EBIT to Interest (avg)

2.21

Debt to EBITDA (avg)

1.57

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

1.43

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

45.87%

Pledged Shares

Institutional Holding

ROCE (avg)

5.27%

ROE (avg)

3.60%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

260

Industry P/E

Price to Book Value

15.68

EV to EBIT

385.79

EV to EBITDA

239.61

EV to Capital Employed

11.06

EV to Sales

6.03

PEG Ratio

1.17

Dividend Yield

0.12%

ROCE (Latest)

2.87%

ROE (Latest)

6.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

16What is working for the Company

NET PROFIT(HY)

Higher at CNY 11.72 MM

ROCE(HY)

Highest at 3.77%

RAW MATERIAL COST(Y)

Fallen by -9.48% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 31.03 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.39%

-7What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY -1.76 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.19 %

PRE-TAX PROFIT(Q)

Lowest at CNY -1.92 MM

NET PROFIT(Q)

Fallen at -35.99%

Here's what is working for Shanghai Amarsoft Information & Technology Co., Ltd.

Debt-Equity Ratio

Lowest at 31.03 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.39%

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 -9.48% (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 Shanghai Amarsoft Information & Technology Co., Ltd.

Pre-Tax Profit

At CNY -1.92 MM has Fallen at -156.03%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Profit

Lowest at CNY -1.76 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -1.19 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -1.92 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -35.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)