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 208.89%, 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Microgate Technology Co., Ltd.

214.02%

5.66

54.84%

China Shanghai Composite

23.91%

1.73

13.79%

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)

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

29.75%

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

3.89

EV to EBIT

84.53

EV to EBITDA

41.24

EV to Capital Employed

3.82

EV to Sales

4.99

PEG Ratio

Dividend Yield

1.00%

ROCE (Latest)

4.52%

ROE (Latest)

6.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 616.28 MM

RAW MATERIAL COST(Y)

Fallen by 1.37% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 2.69 times

-11What is not working for the Company

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%

OPERATING PROFIT(Q)

Lowest at CNY 47.78 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.53 %

PRE-TAX PROFIT(Q)

Lowest at CNY 55.25 MM

NET PROFIT(Q)

Lowest at CNY 46.7 MM

EPS(Q)

Lowest at CNY 0.05

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

Operating Cash Flow

Highest at CNY 616.28 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)

Debtors Turnover Ratio

Highest at 2.69 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 1.37% (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.

Net Sales

At CNY 864.28 MM has Fallen at -8.88%

over average net sales of the previous four periods of CNY 948.47 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 47.78 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 55.25 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 55.25 MM has Fallen at -36.08%

over average net sales of the previous four periods of CNY 86.43 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 46.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

At CNY 46.7 MM has Fallen at -40.96%

over average net sales of the previous four periods of CNY 79.1 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 3.62 %

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