Shenzhen ZQgame Co., Ltd. (300052) 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 ZQgame Co., Ltd.

Why is Shenzhen ZQgame Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.08%

The company has been able to generate a Return on Capital Employed (avg) of 0.08% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -13.86% and Operating profit at -265.42% over the last 5 years
The company is Net-Debt Free
The company has reported losses. Due to this company has reported negative ROE

Poor long term growth as Net Sales has grown by an annual rate of -13.86% and Operating profit at -265.42% over the last 5 years

With a fall in Operating Profit of -244.2%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
NET PROFIT(HY) At CNY -44.53 MM has Grown at -64.12%
OPERATING CASH FLOW(Y) Lowest at CNY 23.33 MM
NET SALES(Q) Lowest at CNY 31.66 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 46.79%, its profits have fallen by -15.9%

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 ZQgame Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen ZQgame Co., Ltd.

40.36%

0.04

51.86%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-13.86%

EBIT Growth (5y)

-265.42%

EBIT to Interest (avg)

-18.68

Debt to EBITDA (avg)

1.60

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.46

Tax Ratio

12.22%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.08%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

9.33

EV to EBIT

-94.27

EV to EBITDA

244.28

EV to Capital Employed

8.36

EV to Sales

19.63

PEG Ratio

Dividend Yield

ROCE (Latest)

-8.86%

ROE (Latest)

-17.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

1What is working for the Company

NET PROFIT(9M)

Higher at CNY -47.17 MM

-25What is not working for the Company

NET PROFIT(HY)

At CNY -44.53 MM has Grown at -64.12%

OPERATING CASH FLOW(Y)

Lowest at CNY 23.33 MM

NET SALES(Q)

Lowest at CNY 31.66 MM

RAW MATERIAL COST(Y)

Grown by 40.57% (YoY

CASH AND EQV(HY)

Lowest at CNY 45.62 MM

OPERATING PROFIT(Q)

Lowest at CNY -10.81 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -34.14 %

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

Net Profit

At CNY -44.53 MM has Grown at -64.12%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 31.66 MM has Fallen at -31.04%

over average net sales of the previous four periods of CNY 45.91 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 31.66 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 23.33 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY -10.81 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -34.14 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 45.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 40.57% (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