Shenzhen Microgate Technology Co., Ltd. (300319) 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 Microgate Technology Co., Ltd.

Why is Shenzhen Microgate Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.84% and Operating profit at 7.66% over the last 5 years

Negative results in Mar 26

ROCE(HY) Lowest at 6.29%
DEBT-EQUITY RATIO (HY) Highest at 3.62 %
NET SALES(Q) At CNY 864.28 MM has Fallen at -8.88%

With ROE of 6.11%, it has a fair valuation with a 3.89 Price to Book Value

Over the past year, while the stock has generated a return of 138.87%, its profits have fallen by -9.1%
At the current price, the company has a high dividend yield of 1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Microgate Technology 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 Microgate Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Microgate Technology Co., Ltd.

61.26%

4.18

57.32%

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)

7.84%

EBIT Growth (5y)

7.66%

EBIT to Interest (avg)

46.52

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.63

Tax Ratio

8.05%

Dividend Payout Ratio

29.75%

Pledged Shares

Institutional Holding

ROCE (avg)

6.25%

ROE (avg)

6.81%

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

5.58

EV to EBIT

120.88

EV to EBITDA

58.98

EV to Capital Employed

5.46

EV to Sales

7.13

PEG Ratio

Dividend Yield

0.34%

ROCE (Latest)

4.52%

ROE (Latest)

6.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 819.56 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -22.44% (YoY

NET SALES(Q)

Highest at CNY 1,120.6 MM

OPERATING PROFIT(Q)

Highest at CNY 194.15 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.33 %

PRE-TAX PROFIT(Q)

Highest at CNY 119.76 MM

NET PROFIT(Q)

Highest at CNY 101.03 MM

EPS(Q)

Highest at CNY 0.12

-4What is not working for the Company

ROCE(HY)

Lowest at 6.65%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.22 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.12 times

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

Operating Cash Flow

Highest at CNY 819.56 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)

Net Sales

Highest at CNY 1,120.6 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 194.15 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 17.33 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 119.76 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 101.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.12

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -22.44% (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 Microgate Technology Co., Ltd.

Inventory Turnover Ratio

Lowest at 5.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.12 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio