Why is Shenzhen Increase Technology Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 0%
- The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward
2
Poor long term growth as Net Sales has grown by an annual rate of 4.67% and Operating profit at -36.93% over the last 5 years
3
The company has declared Negative results for the last 14 consecutive quarters
- INTEREST(HY) At CNY 2.22 MM has Grown at 73.13%
- NET PROFIT(HY) At CNY -48.91 MM has Grown at -40.09%
- ROCE(HY) Lowest at -14.37%
4
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 14.96%, its profits have fallen by -50.8%
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 Computers - Software & Consulting)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Shenzhen Increase Technology Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Shenzhen Increase Technology Co., Ltd.
-100.0%
1.58
54.38%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
4.67%
EBIT Growth (5y)
-36.93%
EBIT to Interest (avg)
-21.46
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.21
Sales to Capital Employed (avg)
0.37
Tax Ratio
0.17%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
0.90%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
2.99
EV to EBIT
-18.07
EV to EBITDA
-29.80
EV to Capital Employed
2.54
EV to Sales
5.28
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-14.08%
ROE (Latest)
-17.63%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Bullish
No Trend
Technical Movement
11What is working for the Company
NET SALES(Q)
At CNY 81.6 MM has Grown at 68.98%
RAW MATERIAL COST(Y)
Fallen by -31.7% (YoY
OPERATING PROFIT MARGIN(Q)
Highest at -13.57 %
PRE-TAX PROFIT(Q)
Highest at CNY -9.91 MM
NET PROFIT(Q)
Highest at CNY -9.44 MM
EPS(Q)
Highest at CNY -0.06
-19What is not working for the Company
INTEREST(HY)
At CNY 2.22 MM has Grown at 73.13%
NET PROFIT(HY)
At CNY -48.91 MM has Grown at -40.09%
ROCE(HY)
Lowest at -14.37%
DEBT-EQUITY RATIO
(HY)
Highest at 21.01 %
Here's what is working for Shenzhen Increase Technology Co., Ltd.
Net Sales
At CNY 81.6 MM has Grown at 68.98%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (CNY MM)
Operating Profit Margin
Highest at -13.57 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at CNY -9.91 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 -9.44 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY -0.06
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Raw Material Cost
Fallen by -31.7% (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 Increase Technology Co., Ltd.
Interest
At CNY 2.22 MM has Grown at 73.13%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debt-Equity Ratio
Highest at 21.01 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






