Shenzhen Refond Optoelectronics Co., Ltd. (300241) 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 Refond Optoelectronics Co., Ltd.

Why is Shenzhen Refond Optoelectronics Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.52%

The company has been able to generate a Return on Capital Employed (avg) of 0.52% 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 7.12% and Operating profit at 18.65% 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 2.15% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.12% and Operating profit at 18.65% over the last 5 years

With ROE of 2.05%, it has a fair valuation with a 1.81 Price to Book Value

Over the past year, while the stock has generated a return of 21.09%, its profits have risen by 682.2% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.2

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 Other Electrical Equipment)

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

Is Shenzhen Refond Optoelectronics Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Refond Optoelectronics Co., Ltd.

26.55%

1.75

42.30%

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)

7.12%

EBIT Growth (5y)

18.65%

EBIT to Interest (avg)

-3.13

Debt to EBITDA (avg)

4.17

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

0.53

Tax Ratio

35.14%

Dividend Payout Ratio

43.38%

Pledged Shares

Institutional Holding

ROCE (avg)

0.52%

ROE (avg)

2.15%

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

1.81

EV to EBIT

95.78

EV to EBITDA

21.41

EV to Capital Employed

1.69

EV to Sales

2.60

PEG Ratio

0.13

Dividend Yield

0.22%

ROCE (Latest)

1.76%

ROE (Latest)

2.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.49% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.88 times

NET SALES(Q)

Highest at CNY 479.82 MM

PRE-TAX PROFIT(Q)

At CNY 27.53 MM has Grown at 74.3%

NET PROFIT(Q)

At CNY 20.31 MM has Grown at 107.45%

-11What is not working for the Company

INTEREST(HY)

At CNY 6.7 MM has Grown at 31.3%

NET PROFIT(HY)

At CNY 23.73 MM has Grown at -36.03%

INTEREST COVERAGE RATIO(Q)

Lowest at 999.12

OPERATING PROFIT(Q)

Lowest at CNY 28.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.96 %

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

Net Sales

Highest at CNY 479.82 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 27.53 MM has Grown at 74.3%

over average net sales of the previous four periods of CNY 15.79 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 20.31 MM has Grown at 107.45%

over average net sales of the previous four periods of CNY 9.79 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 2.88 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 -1.49% (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 Refond Optoelectronics Co., Ltd.

Interest

At CNY 6.7 MM has Grown at 31.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 999.12

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 28.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales