Shenzhen Jove Enterprise Ltd. () 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 Jove Enterprise Ltd.

Why is Shenzhen Jove Enterprise Ltd. ?

Poor Management Efficiency with a low ROCE of 4.10%

The company has been able to generate a Return on Capital Employed (avg) of 4.10% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 6.94% and Operating profit at -13.98% over the last 5 years

With ROE of 2.82%, it has a very expensive valuation with a 16.74 Price to Book Value

Over the past year, while the stock has generated a return of 418.05%, its profits have risen by 46% ; the PEG ratio of the company is 12.9

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Jove Enterprise 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 Jove Enterprise Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Jove Enterprise Ltd.

175.43%

5.67

81.44%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.94%

EBIT Growth (5y)

-13.98%

EBIT to Interest (avg)

7.99

Debt to EBITDA (avg)

0.62

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.70

Tax Ratio

4.95%

Dividend Payout Ratio

31.25%

Pledged Shares

Institutional Holding

ROCE (avg)

3.34%

ROE (avg)

5.24%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

823

Industry P/E

Price to Book Value

23.19

EV to EBIT

886.98

EV to EBITDA

268.88

EV to Capital Employed

19.75

EV to Sales

18.93

PEG Ratio

17.91

Dividend Yield

ROCE (Latest)

2.23%

ROE (Latest)

2.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

26What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

OPERATING PROFIT(Q)

Highest at CNY 65.79 MM

RAW MATERIAL COST(Y)

Fallen by -0.62% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.03 times

NET SALES(Q)

Highest at CNY 652.49 MM

PRE-TAX PROFIT(Q)

Highest at CNY 21.25 MM

NET PROFIT(Q)

At CNY 18.62 MM has Grown at 61.98%

EPS(Q)

Highest at CNY 0.1

-6What is not working for the Company

INTEREST(9M)

At CNY 10.25 MM has Grown at 41.56%

DEBT-EQUITY RATIO (HY)

Highest at 30.09 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.21 times

Here's what is working for Shenzhen Jove Enterprise Ltd.

Operating Profit

Highest at CNY 65.79 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (CNY MM)

Net Sales

Highest at CNY 652.49 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 652.49 MM has Grown at 29.1%

over average net sales of the previous four periods of CNY 505.42 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 21.25 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 21.25 MM has Grown at 87.73%

over average net sales of the previous four periods of CNY 11.32 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 18.62 MM has Grown at 61.98%

over average net sales of the previous four periods of CNY 11.5 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 3.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.62% (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 Jove Enterprise Ltd.

Interest

At CNY 10.25 MM has Grown at 41.56%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 30.09 %

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

Inventory Turnover Ratio

Lowest at 3.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio