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

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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 42.90% and Operating profit at 34.97% 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 Mar 25

PRE-TAX PROFIT(Q) At CNY 21.58 MM has Fallen at -68.14%
NET PROFIT(Q) At CNY 17.6 MM has Fallen at -70.03%
RAW MATERIAL COST(Y) Grown by 41.77% (YoY)

With ROE of 8.48%, it has a very expensive valuation with a 1.51 Price to Book Value

Over the past year, while the stock has generated a return of 62.87%, its profits have fallen by -5.1%

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 Neoway Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Neoway Technology Co., Ltd.

62.87%

0.76

73.74%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

42.90%

EBIT Growth (5y)

34.97%

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)

1.45

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

1.51

EV to EBIT

20.77

EV to EBITDA

14.65

EV to Capital Employed

1.36

EV to Sales

0.48

PEG Ratio

Dividend Yield

0.65%

ROCE (Latest)

6.54%

ROE (Latest)

8.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 32.34 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.04%

NET SALES(Q)

Highest at CNY 1,056.8 MM

-24What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 21.58 MM has Fallen at -68.14%

NET PROFIT(Q)

At CNY 17.6 MM has Fallen at -70.03%

RAW MATERIAL COST(Y)

Grown by 41.77% (YoY

INTEREST(Q)

Highest at CNY 8.52 MM

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

Debtors Turnover Ratio

Highest at 6.04% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Operating Cash Flow

Highest at CNY 32.34 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 1,056.8 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 1,056.8 MM has Grown at 22.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

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

Pre-Tax Profit

At CNY 21.58 MM has Fallen at -68.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 17.6 MM has Fallen at -70.03%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 8.52 MM has Grown at 79.68%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 8.52 MM

in the last five periods and Increased by 79.68% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 41.77% (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