Shenzhen Inovance Technology Co., Ltd. (300124) 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 Inovance Technology Co., Ltd.

Why is Shenzhen Inovance Technology Co., Ltd. ?

Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 7,330.77 MM
INVENTORY TURNOVER RATIO(HY) Highest at 3.98 times
CASH AND EQV(HY) Highest at CNY 16,275.05 MM

With ROE of 17.42%, it has a expensive valuation with a 7.28 Price to Book Value

Over the past year, while the stock has generated a return of -5.91%, its profits have risen by 12.9% ; the PEG ratio of the company is 4.4
At the current price, the company has a high dividend yield of 0.5

Majority shareholders : FIIs

Below par performance in long term as well as near term

Along with generating -5.91% 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 Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Inovance Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

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

Is Shenzhen Inovance Technology Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shenzhen Inovance Technology Co., Ltd.

-5.91%

0.62

32.75%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

32.51%

EBIT Growth (5y)

21.69%

EBIT to Interest (avg)

26.44

Debt to EBITDA (avg)

0.34

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

0.90

Tax Ratio

6.50%

Dividend Payout Ratio

25.63%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

15.33%

ROE (avg)

20.01%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.28

EV to EBIT

53.46

EV to EBITDA

43.50

EV to Capital Employed

6.19

EV to Sales

5.51

PEG Ratio

4.35

Dividend Yield

0.50%

ROCE (Latest)

11.57%

ROE (Latest)

17.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 7,330.77 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.98 times

CASH AND EQV(HY)

Highest at CNY 16,275.05 MM

NET SALES(Q)

At CNY 11,153.25 MM has Grown at 21.05%

-7What is not working for the Company

ROCE(HY)

Lowest at 17.04%

INTEREST(Q)

At CNY 40.65 MM has Grown at 12.03%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,610.35

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

Operating Cash Flow

Highest at CNY 7,330.77 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 3.98 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At CNY 11,153.25 MM has Grown at 21.05%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 16,275.05 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 Inovance Technology Co., Ltd.

Interest

At CNY 40.65 MM has Grown at 12.03%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,610.35

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest