Shenzhen Neoway Technology Co., Ltd. (688159) 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 Neoway Technology Co., Ltd.

Why is Shenzhen Neoway Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.45%

The company has been able to generate a Return on Capital Employed (avg) of 1.45% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 42.38% and Operating profit at 29.51% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 2.22% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

NET SALES(Q) At CNY 583.49 MM has Fallen at -27.61%
INTEREST(Q) Highest at CNY 10.7 MM

With ROE of 8.48%, it has a very expensive valuation with a 6.74 Price to Book Value

Over the past year, while the stock has generated a return of 8.04%, its profits have fallen by -5.1%

Underperformed the market in the last 1 year

The stock has generated a return of 8.04% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Neoway Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Neoway Technology Co., Ltd.

-1.28%

0.49

69.96%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

42.38%

EBIT Growth (5y)

29.51%

EBIT to Interest (avg)

-3.55

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

1.55

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

9.06%

Pledged Shares

Institutional Holding

ROCE (avg)

1.45%

ROE (avg)

2.22%

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

6.74

EV to EBIT

77.15

EV to EBITDA

54.40

EV to Capital Employed

5.05

EV to Sales

1.77

PEG Ratio

Dividend Yield

0.15%

ROCE (Latest)

6.54%

ROE (Latest)

8.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 153.56 MM

NET SALES(9M)

At CNY 3,035.75 MM has Grown at 18.18%

NET PROFIT(HY)

Higher at CNY 65.83 MM

RAW MATERIAL COST(Y)

Fallen by -98.54% (YoY

CASH AND EQV(HY)

Highest at CNY 1,312.59 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 15.55 times

OPERATING PROFIT MARGIN(Q)

Highest at 5.77 %

PRE-TAX PROFIT(Q)

At CNY 22.03 MM has Grown at 72.42%

-14What is not working for the Company

NET SALES(Q)

At CNY 583.49 MM has Fallen at -27.61%

INTEREST(Q)

Highest at CNY 10.7 MM

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

Net Profit

Higher at CNY 65.83 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Net Profit

At CNY 65.83 MM has Grown at 80.11%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 153.56 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Operating Profit Margin

Highest at 5.77 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CNY 22.03 MM has Grown at 72.42%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,312.59 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 15.55 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -98.54% (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 Neoway Technology Co., Ltd.

Net Sales

At CNY 583.49 MM has Fallen at -27.61%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 10.7 MM has Grown at 48.37%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 10.7 MM

in the last five periods and Increased by 48.37% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)