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

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 2.38% and Operating profit at -162.99% over the last 5 years

With a fall in Net Sales of -12.87%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
INTEREST(HY) At CNY 0.37 MM has Grown at 38.85%
OPERATING CASH FLOW(Y) Lowest at CNY 28.38 MM
RAW MATERIAL COST(Y) Grown by 20.66% (YoY)

With ROE of 0.55%, it has a very expensive valuation with a 6.77 Price to Book Value

Over the past year, while the stock has generated a return of 37.34%, its profits have fallen by -79.2%

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 IT - Hardware)

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Chengtian Weiye Technology Co., Ltd.

41.75%

6.34

60.49%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.38%

EBIT Growth (5y)

-162.99%

EBIT to Interest (avg)

14.64

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.55

Tax Ratio

14.66%

Dividend Payout Ratio

33.56%

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

1241

Industry P/E

Price to Book Value

6.77

EV to EBIT

-1956.43

EV to EBITDA

288.01

EV to Capital Employed

10.89

EV to Sales

10.67

PEG Ratio

Dividend Yield

0.11%

ROCE (Latest)

-0.56%

ROE (Latest)

0.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 604.95 MM

-34What is not working for the Company

INTEREST(HY)

At CNY 0.37 MM has Grown at 38.85%

OPERATING CASH FLOW(Y)

Lowest at CNY 28.38 MM

RAW MATERIAL COST(Y)

Grown by 20.66% (YoY

NET SALES(Q)

Lowest at CNY 90.69 MM

OPERATING PROFIT(Q)

Lowest at CNY -5.57 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -6.14 %

PRE-TAX PROFIT(Q)

Lowest at CNY -4.48 MM

NET PROFIT(Q)

Lowest at CNY -3.97 MM

EPS(Q)

Lowest at CNY -0.03

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

Cash and Eqv

Highest at CNY 604.95 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Shenzhen Chengtian Weiye Technology Co., Ltd.

Interest

At CNY 0.37 MM has Grown at 38.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -4.48 MM has Fallen at -213.95%

over average net sales of the previous four periods of CNY 3.93 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -3.97 MM has Fallen at -210.43%

over average net sales of the previous four periods of CNY 3.59 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 28.38 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)

Net Sales

At CNY 90.69 MM has Fallen at -12.43%

over average net sales of the previous four periods of CNY 103.56 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 90.69 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -5.57 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -6.14 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -4.48 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -3.97 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 20.66% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales