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 10.99% and Operating profit at 18.38% over the last 5 years

Flat results in Sep 25

INTEREST(9M) At CNY 4.26 MM has Grown at 27.54%
OPERATING PROFIT MARGIN(Q) Lowest at 8.57 %
RAW MATERIAL COST(Y) Grown by 16.99% (YoY)

With ROE of 7.28%, it has a fair valuation with a 2.36 Price to Book Value

Over the past year, while the stock has generated a return of -3.20%, its profits have risen by 5% ; the PEG ratio of the company is 6.7
At the current price, the company has a high dividend yield of 0.9

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 13.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.20% returns

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.

-1.4%

1.24

42.59%

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)

10.99%

EBIT Growth (5y)

18.38%

EBIT to Interest (avg)

39.25

Debt to EBITDA (avg)

0.33

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.63

Tax Ratio

9.14%

Dividend Payout Ratio

29.89%

Pledged Shares

Institutional Holding

ROCE (avg)

6.55%

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

2.36

EV to EBIT

45.00

EV to EBITDA

20.30

EV to Capital Employed

2.39

EV to Sales

3.10

PEG Ratio

6.73

Dividend Yield

0.91%

ROCE (Latest)

5.31%

ROE (Latest)

7.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

6What is working for the Company

NET SALES(Q)

Highest at CNY 1,106.84 MM

-10What is not working for the Company

INTEREST(9M)

At CNY 4.26 MM has Grown at 27.54%

OPERATING PROFIT MARGIN(Q)

Lowest at 8.57 %

RAW MATERIAL COST(Y)

Grown by 16.99% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 2.76 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.37 times

OPERATING PROFIT(Q)

Lowest at CNY 94.86 MM

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

Net Sales

Highest at CNY 1,106.84 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 1,106.84 MM has Grown at 26.75%

over average net sales of the previous four periods of CNY 873.24 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Shenzhen Microgate Technology Co., Ltd.

Interest

At CNY 4.26 MM has Grown at 27.54%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 8.57 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 94.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Debt-Equity Ratio

Highest at 2.76 %

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

Debtors Turnover Ratio

Lowest at 2.37 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 16.99% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales