Shenzhen Chengtian Weiye Technology Co., Ltd. (300689) 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

Shenzhen Chengtian Weiye Technology Co., Ltd.

Why is Shenzhen Chengtian Weiye Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.02%

The company has been able to generate a Return on Capital Employed (avg) of 4.02% 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 1.96% and Operating profit at -18.99% over the last 5 years

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at CNY 42.55 MM
INTEREST COVERAGE RATIO(Q) Lowest at 3,663.16
OPERATING PROFIT MARGIN(Q) Lowest at 5.03 %

With ROE of 3.06%, it has a very expensive valuation with a 7.73 Price to Book Value

Over the past year, while the stock has generated a return of 77.76%, its profits have risen by 516.6% ; the PEG ratio of the company is 0.5

Consistent Returns over the last 3 years

Along with generating 77.76% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Chengtian Weiye Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

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

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

Is Shenzhen Chengtian Weiye Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Chengtian Weiye Technology Co., Ltd.

60.46%

5.14

63.12%

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)

1.96%

EBIT Growth (5y)

-18.99%

EBIT to Interest (avg)

14.64

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.59

Tax Ratio

14.66%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.02%

ROE (avg)

3.30%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

253

Industry P/E

Price to Book Value

7.73

EV to EBIT

544.75

EV to EBITDA

104.90

EV to Capital Employed

12.47

EV to Sales

12.35

PEG Ratio

0.49

Dividend Yield

ROCE (Latest)

2.29%

ROE (Latest)

3.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

NET SALES(HY)

At CNY 202.11 MM has Grown at 29.27%

NET PROFIT(HY)

Higher at CNY 16.32 MM

RAW MATERIAL COST(Y)

Fallen by -51.3% (YoY

PRE-TAX PROFIT(Q)

At CNY 5.98 MM has Grown at 57.65%

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 42.55 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 3,663.16

OPERATING PROFIT MARGIN(Q)

Lowest at 5.03 %

Here's what is working for Shenzhen Chengtian Weiye Technology Co., Ltd.

Net Sales

At CNY 202.11 MM has Grown at 29.27%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 5.98 MM has Grown at 57.65%

over average net sales of the previous four periods of CNY 3.79 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 5.05 MM has Grown at 69.02%

over average net sales of the previous four periods of CNY 2.99 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -51.3% (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 Chengtian Weiye Technology Co., Ltd.

Operating Cash Flow

Lowest at CNY 42.55 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)

Interest Coverage Ratio

Lowest at 3,663.16

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 5.03 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales