Shenzhen INVT Electric Co., Ltd. (002334) 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 INVT Electric Co., Ltd.

Why is Shenzhen INVT Electric Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 14.16% and Operating profit at 22.14% over the last 5 years

Negative results in Sep 25

INTEREST(HY) At CNY 12 MM has Grown at 19.54%
INTEREST COVERAGE RATIO(Q) Lowest at 248.58
DEBT-EQUITY RATIO (HY) Highest at -3.74 %

With ROE of 7.98%, it has a fair valuation with a 2.57 Price to Book Value

Over the past year, while the stock has generated a return of -15.22%, its profits have risen by 22.2% ; the PEG ratio of the company is 1.5
At the current price, the company has a high dividend yield of 0.5

Below par performance in long term as well as near term

Along with generating -15.22% 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 INVT Electric Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Shenzhen INVT Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen INVT Electric Co., Ltd.

-12.86%

0.77

38.04%

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)

14.16%

EBIT Growth (5y)

22.14%

EBIT to Interest (avg)

8.80

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

1.20

Tax Ratio

16.32%

Dividend Payout Ratio

16.85%

Pledged Shares

Institutional Holding

ROCE (avg)

6.01%

ROE (avg)

8.99%

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

2.57

EV to EBIT

56.58

EV to EBITDA

26.57

EV to Capital Employed

2.45

EV to Sales

1.87

PEG Ratio

1.45

Dividend Yield

0.48%

ROCE (Latest)

4.33%

ROE (Latest)

7.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 2,248.12 MM

-18What is not working for the Company

INTEREST(HY)

At CNY 12 MM has Grown at 19.54%

INTEREST COVERAGE RATIO(Q)

Lowest at 248.58

DEBT-EQUITY RATIO (HY)

Highest at -3.74 %

OPERATING PROFIT(Q)

Lowest at CNY 12.88 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.2 %

PRE-TAX PROFIT(Q)

Lowest at CNY 18.02 MM

NET PROFIT(Q)

Lowest at CNY 24.74 MM

EPS(Q)

Lowest at CNY 0.03

Here's what is working for Shenzhen INVT Electric Co., Ltd.

Cash and Eqv

Highest at CNY 2,248.12 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 INVT Electric Co., Ltd.

Pre-Tax Profit

At CNY 18.02 MM has Fallen at -55.87%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

At CNY 12 MM has Grown at 19.54%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 248.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 24.74 MM has Fallen at -43.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 12.88 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.2 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 18.02 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 24.74 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -3.74 %

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