ScoreWhy is Shenzhen Deren Electronic Co., Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0.39%
- Poor long term growth as Net Sales has grown by an annual rate of -8.74% and Operating profit at -222.38% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
The company has declared Negative results for the last 6 consecutive quarters
- NET PROFIT(HY) At CNY -1,067.15 MM has Grown at -504.98%
- OPERATING CASH FLOW(Y) Lowest at CNY -392.55 MM
- NET SALES(Q) At CNY 1,017.3 MM has Fallen at -21.49%
3
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 -8.91%, its profits have fallen by -280.7%
4
Below par performance in long term as well as near term
- Along with generating -8.91% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow 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 Electronics & Appliances)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Shenzhen Deren Electronic Co., Ltd. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Shenzhen Deren Electronic Co., Ltd.
-15.1%
0.40
56.18%
China Shanghai Composite
14.77%
1.01
15.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-8.74%
EBIT Growth (5y)
-222.38%
EBIT to Interest (avg)
-4.87
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.54
Sales to Capital Employed (avg)
1.40
Tax Ratio
9.92%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.39%
ROE (avg)
0.79%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
3.35
EV to EBIT
-3.26
EV to EBITDA
-4.04
EV to Capital Employed
1.97
EV to Sales
1.47
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-60.23%
ROE (Latest)
-115.17%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -39.43% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 5.36%
PRE-TAX PROFIT(Q)
Highest at CNY 37.04 MM
NET PROFIT(Q)
Highest at CNY 32.22 MM
EPS(Q)
Highest at CNY 0.05
-24What is not working for the Company
NET PROFIT(HY)
At CNY -1,067.15 MM has Grown at -504.98%
OPERATING CASH FLOW(Y)
Lowest at CNY -392.55 MM
NET SALES(Q)
At CNY 1,017.3 MM has Fallen at -21.49%
ROCE(HY)
Lowest at -58.75%
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.12%
INTEREST(Q)
At CNY 24.99 MM has Grown at 70.48%
CASH AND EQV(HY)
Lowest at CNY 155.58 MM
Here's what is working for Shenzhen Deren Electronic Co., Ltd.
Net Profit
At CNY 32.22 MM has Grown at 220.97%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Pre-Tax Profit
At CNY 37.04 MM has Grown at 159.41%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
Highest at CNY 37.04 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 32.22 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.05
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Inventory Turnover Ratio
Highest at 5.36%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -39.43% (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 Deren Electronic Co., Ltd.
Net Sales
At CNY 1,017.3 MM has Fallen at -21.49%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Operating Cash Flow
Lowest at CNY -392.55 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest
At CNY 24.99 MM has Grown at 70.48%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debtors Turnover Ratio
Lowest at 2.12% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Net Sales
Lowest at CNY 1,017.3 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Cash and Eqv
Lowest at CNY 155.58 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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