Shenzhen Deren Electronic Co., Ltd. (002055) 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 Deren Electronic Co., Ltd.

Why is Shenzhen Deren Electronic Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.39%

The company has been able to generate a Return on Capital Employed (avg) of 0.39% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -10.06% and Operating profit at 15.69% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 0.79% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -10.06% and Operating profit at 15.69% over the last 5 years

Flat results in Mar 26

INTEREST(Q) At CNY 22.44 MM has Grown at 12.34%
INTEREST COVERAGE RATIO(Q) Lowest at 246.64
OPERATING PROFIT(Q) Lowest at CNY 55.34 MM

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 -5.52%, its profits have risen by 100.9% ; the PEG ratio of the company is 2.2

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 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, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Deren Electronic Co., Ltd.

-6.42%

0.13

42.92%

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)

-10.06%

EBIT Growth (5y)

15.69%

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)

1.55

Tax Ratio

9.92%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.39%

ROE (avg)

0.79%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

223

Industry P/E

Price to Book Value

2.73

EV to EBIT

17.02

EV to EBITDA

10.15

EV to Capital Employed

2.27

EV to Sales

0.92

PEG Ratio

2.20

Dividend Yield

ROCE (Latest)

13.33%

ROE (Latest)

1.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

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

12What is working for the Company

NET PROFIT(HY)

Higher at CNY -35.05 MM

ROCE(HY)

Highest at -2.97%

RAW MATERIAL COST(Y)

Fallen by -16.5% (YoY

-9What is not working for the Company

INTEREST(Q)

At CNY 22.44 MM has Grown at 12.34%

INTEREST COVERAGE RATIO(Q)

Lowest at 246.64

OPERATING PROFIT(Q)

Lowest at CNY 55.34 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.16 %

PRE-TAX PROFIT(Q)

Fallen at -37.16%

Here's what is working for Shenzhen Deren Electronic Co., Ltd.

Net Profit

At CNY -35.05 MM has Grown at 96.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Higher at CNY -35.05 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -16.5% (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.

Interest

At CNY 22.44 MM has Grown at 12.34%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 246.64

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 55.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.16 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -37.16%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)