Shenzhen Dawei Innovation Technology Co., Ltd. (002213) 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 Dawei Innovation Technology Co., Ltd.

Why is Shenzhen Dawei Innovation Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.52%

The company has been able to generate a Return on Capital Employed (avg) of 2.52% 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 22.20% and Operating profit at 13.80% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

ROCE(HY) Highest at 0.34%
RAW MATERIAL COST(Y) Fallen by -450.9% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 14.9 times

With ROE of 0.61%, it has a fair valuation with a 8.83 Price to Book Value

Over the past year, while the stock has generated a return of 141.09%, its profits have risen by 107.2% ; the PEG ratio of the company is 13.5

Market Beating performance in long term as well as near term

Along with generating 141.09% 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 hold?

Overall Portfolio exposure to Shenzhen Dawei Innovation Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Shenzhen Dawei Innovation Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Dawei Innovation Technology Co., Ltd.

107.78%

5.10

64.75%

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)

22.20%

EBIT Growth (5y)

13.80%

EBIT to Interest (avg)

-18.84

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.26

Sales to Capital Employed (avg)

1.59

Tax Ratio

0.95%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.52%

ROE (avg)

2.30%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

1445

Industry P/E

Price to Book Value

8.83

EV to EBIT

245.42

EV to EBITDA

190.41

EV to Capital Employed

6.53

EV to Sales

3.96

PEG Ratio

13.48

Dividend Yield

ROCE (Latest)

2.66%

ROE (Latest)

0.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Bullish

OBV

Mildly Bullish

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

29What is working for the Company

ROCE(HY)

Highest at 0.34%

RAW MATERIAL COST(Y)

Fallen by -450.9% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 14.9 times

NET SALES(Q)

Highest at CNY 404.89 MM

OPERATING PROFIT(Q)

Highest at CNY 22.04 MM

OPERATING PROFIT MARGIN(Q)

Highest at 5.44 %

PRE-TAX PROFIT(Q)

Highest at CNY 18.17 MM

NET PROFIT(Q)

Highest at CNY 16.64 MM

EPS(Q)

Highest at CNY 0.07

-14What is not working for the Company

INTEREST(HY)

At CNY 1.04 MM has Grown at 27.19%

OPERATING CASH FLOW(Y)

Lowest at CNY -364.4 MM

DEBT-EQUITY RATIO (HY)

Highest at 42.89 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.76 times

Here's what is working for Shenzhen Dawei Innovation Technology Co., Ltd.

Pre-Tax Profit

At CNY 18.17 MM has Grown at 909.82%

over average net sales of the previous four periods of CNY -2.24 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 16.64 MM has Grown at 545.46%

over average net sales of the previous four periods of CNY -3.74 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 404.89 MM has Grown at 32.54%

over average net sales of the previous four periods of CNY 305.49 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 404.89 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 22.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 5.44 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 18.17 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 16.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.07

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 14.9 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 -450.9% (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 Dawei Innovation Technology Co., Ltd.

Interest

At CNY 1.04 MM has Grown at 27.19%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -364.4 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 42.89 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 4.76 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio