Shenzhen AOTO Electronics Co., Ltd. (002587) 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 AOTO Electronics Co., Ltd.

Why is Shenzhen AOTO Electronics Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of -4.16% and Operating profit at -191.79% over the last 5 years

With a growth in Net Sales of 70.1%, the company declared Outstanding results in Sep 25

PRE-TAX PROFIT(Q) At CNY 6.01 MM has Grown at 151.08%
NET PROFIT(Q) At CNY 7.5 MM has Grown at 217.96%
RAW MATERIAL COST(Y) Fallen by -16.28% (YoY)

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 3.86%, its profits have fallen by -603.7%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen AOTO Electronics 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 AOTO Electronics Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen AOTO Electronics Co., Ltd.

8.21%

0.73

33.07%

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)

-4.16%

EBIT Growth (5y)

-191.79%

EBIT to Interest (avg)

-18.11

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

0.51

Tax Ratio

40.91%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

1.19%

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

2.94

EV to EBIT

-55.14

EV to EBITDA

-87.63

EV to Capital Employed

3.53

EV to Sales

5.10

PEG Ratio

Dividend Yield

0.34%

ROCE (Latest)

-6.40%

ROE (Latest)

-2.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

20What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 6.01 MM has Grown at 151.08%

NET PROFIT(Q)

At CNY 7.5 MM has Grown at 217.96%

RAW MATERIAL COST(Y)

Fallen by -16.28% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.77 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.13 times

NET SALES(Q)

At CNY 216 MM has Grown at 24.08%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Shenzhen AOTO Electronics Co., Ltd.

Pre-Tax Profit

At CNY 6.01 MM has Grown at 151.08%

over average net sales of the previous four periods of CNY -11.77 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 7.5 MM has Grown at 217.96%

over average net sales of the previous four periods of CNY -6.36 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 216 MM has Grown at 24.08%

over average net sales of the previous four periods of CNY 174.09 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 1.77 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.13 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -16.28% (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