Shenzhen Absen Optoelectronic Co., Ltd. (300389) 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

Shenzhen Absen Optoelectronic Co., Ltd.

Why is Shenzhen Absen Optoelectronic Co., Ltd. ?

With a growth in Net Profit of 138.55%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 4 consecutive negative quarters
OPERATING CASH FLOW(Y) Highest at CNY 878.52 MM
PRE-TAX PROFIT(Q) At CNY 65.13 MM has Grown at 166.48%
RAW MATERIAL COST(Y) Fallen by -16.67% (YoY)

With ROE of 9.08%, it has a very attractive valuation with a 3.86 Price to Book Value

Over the past year, while the stock has generated a return of 62.35%, its profits have fallen by -43.3%
At the current price, the company has a high dividend yield of 0.9

Market Beating performance in long term as well as near term

Along with generating 62.35% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Shenzhen Absen Optoelectronic Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Shenzhen Absen Optoelectronic Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Absen Optoelectronic Co., Ltd.

78.32%

0.86

57.23%

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)

16.46%

EBIT Growth (5y)

46.56%

EBIT to Interest (avg)

22.90

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

1.66

Tax Ratio

10.82%

Dividend Payout Ratio

46.99%

Pledged Shares

Institutional Holding

ROCE (avg)

8.73%

ROE (avg)

10.38%

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

3.86

EV to EBIT

54.22

EV to EBITDA

26.31

EV to Capital Employed

5.95

EV to Sales

1.47

PEG Ratio

Dividend Yield

0.91%

ROCE (Latest)

10.97%

ROE (Latest)

9.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 878.52 MM

PRE-TAX PROFIT(Q)

At CNY 65.13 MM has Grown at 166.48%

RAW MATERIAL COST(Y)

Fallen by -16.67% (YoY

CASH AND EQV(HY)

Highest at CNY 3,042.07 MM

DEBT-EQUITY RATIO (HY)

Lowest at -35.97 %

NET SALES(Q)

Highest at CNY 1,053.16 MM

NET PROFIT(Q)

At CNY 58.57 MM has Grown at 99.69%

-4What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 10,284.74

Here's what is working for Shenzhen Absen Optoelectronic Co., Ltd.

Pre-Tax Profit

At CNY 65.13 MM has Grown at 166.48%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 878.52 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 1,053.16 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 58.57 MM has Grown at 99.69%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 3,042.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -35.97 %

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 -16.67% (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 Shenzhen Absen Optoelectronic Co., Ltd.

Interest Coverage Ratio

Lowest at 10,284.74

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest