Shenzhen MTC Co., Ltd. (002429) 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 MTC Co., Ltd.

Why is Shenzhen MTC Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -0.25% and Operating profit at -2.60% over the last 5 years

Negative results in Sep 25

NET SALES(HY) At CNY 10,172.4 MM has Grown at -15.63%
INTEREST(HY) At CNY 75.29 MM has Grown at 19.4%
NET PROFIT(HY) At CNY 670.34 MM has Grown at -30.03%

With ROE of 9.29%, it has a expensive valuation with a 1.88 Price to Book Value

Over the past year, while the stock has generated a return of 68.20%, its profits have fallen by -19.9%
At the current price, the company has a high dividend yield of 1.6

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 MTC Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen MTC Co., Ltd.

72.98%

1.61

51.88%

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)

-0.25%

EBIT Growth (5y)

-2.60%

EBIT to Interest (avg)

8.00

Debt to EBITDA (avg)

1.78

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

0.82

Tax Ratio

14.45%

Dividend Payout Ratio

30.23%

Pledged Shares

Institutional Holding

ROCE (avg)

7.53%

ROE (avg)

10.07%

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

1.88

EV to EBIT

24.78

EV to EBITDA

14.42

EV to Capital Employed

1.78

EV to Sales

1.68

PEG Ratio

Dividend Yield

1.59%

ROCE (Latest)

7.20%

ROE (Latest)

9.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly 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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.27% (YoY

-19What is not working for the Company

NET SALES(HY)

At CNY 10,172.4 MM has Grown at -15.63%

INTEREST(HY)

At CNY 75.29 MM has Grown at 19.4%

NET PROFIT(HY)

At CNY 670.34 MM has Grown at -30.03%

ROCE(HY)

Lowest at 7.66%

CASH AND EQV(HY)

Lowest at CNY 8,044.39 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.76 times

OPERATING PROFIT(Q)

Lowest at CNY 401.09 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.41 %

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

Raw Material Cost

Fallen by -5.27% (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 MTC Co., Ltd.

Net Sales

At CNY 10,172.4 MM has Grown at -15.63%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 75.29 MM has Grown at 19.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 670.34 MM has Grown at -30.03%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 401.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.41 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 8,044.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 1.76 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio