Shenzhen Sinovatio Technology Co., Ltd. (002912) 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 Sinovatio Technology Co., Ltd.

Why is Shenzhen Sinovatio Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 7.63%

The company has been able to generate a Return on Capital Employed (avg) of 7.63% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -4.83% and Operating profit at -167.34% over the last 5 years

With a fall in Net Sales of -69.89%, the company declared Very Negative results in Mar 26

The company has declared negative results in Mar 26 after 5 consecutive negative quarters
NET SALES(Q) At CNY 101.78 MM has Fallen at -45.67%
RAW MATERIAL COST(Y) Grown by 28.57% (YoY)
OPERATING PROFIT(Q) Lowest at CNY -83.76 MM

Below par performance in long term as well as near term

Along with generating -19.47% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Software Products)

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

Is Shenzhen Sinovatio Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Sinovatio Technology Co., Ltd.

-7.92%

0.19

40.70%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.83%

EBIT Growth (5y)

-167.34%

EBIT to Interest (avg)

-78.28

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.64

Sales to Capital Employed (avg)

0.39

Tax Ratio

0.01%

Dividend Payout Ratio

98.40%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

3.46%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

114

Industry P/E

Price to Book Value

1.88

EV to EBIT

-80.29

EV to EBITDA

-1534.68

EV to Capital Employed

3.46

EV to Sales

2.65

PEG Ratio

Dividend Yield

2.22%

ROCE (Latest)

-4.31%

ROE (Latest)

1.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-21What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -128.98 MM

NET SALES(Q)

At CNY 133.09 MM has Fallen at -30.78%

PRE-TAX PROFIT(Q)

At CNY -46.7 MM has Fallen at -797.37%

NET PROFIT(Q)

At CNY -47.14 MM has Fallen at -799.4%

DEBT-EQUITY RATIO (HY)

Highest at -59.9 %

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

Net Sales

At CNY 133.09 MM has Fallen at -30.78%

over average net sales of the previous four periods of CNY 192.26 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -46.7 MM has Fallen at -797.37%

over average net sales of the previous four periods of CNY 6.7 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -47.14 MM has Fallen at -799.4%

over average net sales of the previous four periods of CNY 6.74 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -128.98 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -59.9 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio