Shenzhen Tianyuan DIC Information Technology Co., Ltd. (300047) 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 Tianyuan DIC Information Technology Co., Ltd.

Why is Shenzhen Tianyuan DIC Information Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.93%

The company has been able to generate a Return on Capital Employed (avg) of 2.93% 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 13.07% and Operating profit at -8.92% 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 3.42% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 13.07% and Operating profit at -8.92% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(9M) At CNY -96.9 MM has Grown at -264.2%
RAW MATERIAL COST(Y) Grown by 8.97% (YoY)
PRE-TAX PROFIT(Q) Fallen at -30.88%

With ROE of 2.75%, it has a expensive valuation with a 2.58 Price to Book Value

Over the past year, while the stock has generated a return of 4.84%, its profits have fallen by -26.9%
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Tianyuan DIC Information 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 Tianyuan DIC Information Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Tianyuan DIC Information Technology Co., Ltd.

1.14%

2.30

63.88%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.07%

EBIT Growth (5y)

-8.92%

EBIT to Interest (avg)

2.10

Debt to EBITDA (avg)

5.96

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

1.29

Tax Ratio

33.24%

Dividend Payout Ratio

41.21%

Pledged Shares

Institutional Holding

ROCE (avg)

2.93%

ROE (avg)

3.42%

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

2.58

EV to EBIT

75.10

EV to EBITDA

35.26

EV to Capital Employed

1.99

EV to Sales

1.19

PEG Ratio

Dividend Yield

0.11%

ROCE (Latest)

2.64%

ROE (Latest)

2.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

OPERATING CASH FLOW(Y)

Highest at CNY 776.71 MM

NET SALES(HY)

At CNY 4,134.35 MM has Grown at 19.15%

INVENTORY TURNOVER RATIO(HY)

Highest at 3.48%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.39%

NET PROFIT(Q)

Highest at CNY 21.67 MM

EPS(Q)

Highest at CNY 0.03

-6What is not working for the Company

NET PROFIT(9M)

At CNY -96.9 MM has Grown at -264.2%

RAW MATERIAL COST(Y)

Grown by 8.97% (YoY

PRE-TAX PROFIT(Q)

Fallen at -30.88%

Here's what is working for Shenzhen Tianyuan DIC Information Technology Co., Ltd.

Net Sales

At CNY 4,134.35 MM has Grown at 19.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 776.71 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

Highest at CNY 21.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 3.48%

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 4.39%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Shenzhen Tianyuan DIC Information Technology Co., Ltd.

Pre-Tax Profit

Fallen at -30.88%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 8.97% (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