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 -5.19% and Operating profit at -40.93% over the last 5 years

With a growth in Net Sales of 80.89%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 2 consecutive quarters
NET SALES(HY) At CNY 329.22 MM has Grown at 18.66%
ROCE(HY) Highest at 6%
PRE-TAX PROFIT(Q) At CNY 56.52 MM has Grown at 157.66%

With ROE of 5.52%, it has a fair valuation with a 3.03 Price to Book Value

Over the past year, while the stock has generated a return of -10.98%, its profits have risen by 261.5% ; the PEG ratio of the company is 0.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.98% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Sinovatio Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Sinovatio Technology Co., Ltd.

-10.98%

1.16

40.08%

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)

-5.19%

EBIT Growth (5y)

-40.93%

EBIT to Interest (avg)

-36.63

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.64

Sales to Capital Employed (avg)

0.38

Tax Ratio

Dividend Payout Ratio

57.00%

Pledged Shares

Institutional Holding

ROCE (avg)

7.63%

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

Industry P/E

Price to Book Value

3.03

EV to EBIT

112.36

EV to EBITDA

59.56

EV to Capital Employed

8.29

EV to Sales

5.16

PEG Ratio

0.21

Dividend Yield

0.71%

ROCE (Latest)

7.38%

ROE (Latest)

5.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

18What is working for the Company

NET SALES(HY)

At CNY 329.22 MM has Grown at 18.66%

ROCE(HY)

Highest at 6%

PRE-TAX PROFIT(Q)

At CNY 56.52 MM has Grown at 157.66%

NET PROFIT(Q)

At CNY 56.52 MM has Grown at 159.25%

RAW MATERIAL COST(Y)

Fallen by -0.71% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -67.08 %

INVENTORY TURNOVER RATIO(HY)

Highest at 0.86 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3 times

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Pre-Tax Profit

At CNY 56.52 MM has Grown at 157.66%

over average net sales of the previous four periods of CNY 21.93 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 56.52 MM has Grown at 159.25%

over average net sales of the previous four periods of CNY 21.8 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 329.22 MM has Grown at 18.66%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at -67.08 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 0.86 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.71% (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 Sinovatio Technology Co., Ltd.

Non Operating Income

Highest at CNY 0.61 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income