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

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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 11.76% and Operating profit at 18.78% over the last 5 years

Flat results in Mar 25

INTEREST(HY) At CNY 4.07 MM has Grown at 404.34%
INTEREST COVERAGE RATIO(Q) Lowest at 2,253.99
RAW MATERIAL COST(Y) Grown by 8.06% (YoY)

With ROE of 7.28%, it has a fair valuation with a 2.38 Price to Book Value

Over the past year, while the stock has generated a return of -8.85%, its profits have risen by 5% ; the PEG ratio of the company is 6.8
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 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.85% 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.

-0.48%

1.44

43.73%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.76%

EBIT Growth (5y)

18.78%

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

2.38

EV to EBIT

45.36

EV to EBITDA

20.46

EV to Capital Employed

2.41

EV to Sales

3.13

PEG Ratio

6.78

Dividend Yield

0.91%

ROCE (Latest)

5.31%

ROE (Latest)

7.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 592.35 MM

-15What is not working for the Company

INTEREST(HY)

At CNY 4.07 MM has Grown at 404.34%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,253.99

RAW MATERIAL COST(Y)

Grown by 8.06% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 38.34 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.94 %

PRE-TAX PROFIT(Q)

Lowest at CNY 73.55 MM

EPS(Q)

Lowest at CNY 0.07

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

Operating Cash Flow

Highest at CNY 592.35 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

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

Interest

At CNY 4.07 MM has Grown at 404.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,253.99

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 38.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.94 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 73.55 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

EPS

Lowest at CNY 0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 8.06% (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

Non Operating Income

Highest at CNY 0.5 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income