Square Technology Group Co., Ltd. (603339) 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

Square Technology Group Co., Ltd.

Why is Square Technology Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.94% and Operating profit at 2.58% over the last 5 years

With a fall in Net Profit of -21.45%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 3 consecutive quarters
NET PROFIT(HY) At CNY 54.5 MM has Grown at -58.92%
INTEREST(HY) At CNY 0.42 MM has Grown at 21,730.96%
ROCE(HY) Lowest at 6.09%

Underperformed the market in the last 1 year

The stock has generated a return of 4.58% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Industrial Manufacturing)

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

Is Square Technology Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Square Technology Group Co., Ltd.

-5.72%

1.09

37.06%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.94%

EBIT Growth (5y)

2.58%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

0.80

Tax Ratio

13.90%

Dividend Payout Ratio

30.46%

Pledged Shares

Institutional Holding

ROCE (avg)

18.82%

ROE (avg)

10.29%

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

1.71

EV to EBIT

20.03

EV to EBITDA

13.76

EV to Capital Employed

2.13

EV to Sales

2.02

PEG Ratio

Dividend Yield

1.66%

ROCE (Latest)

10.65%

ROE (Latest)

6.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.19% (YoY

-32What is not working for the Company

NET PROFIT(HY)

At CNY 54.5 MM has Grown at -58.92%

INTEREST(HY)

At CNY 0.42 MM has Grown at 21,730.96%

ROCE(HY)

Lowest at 6.09%

NET SALES(Q)

At CNY 372.42 MM has Fallen at -12.56%

INTEREST COVERAGE RATIO(Q)

Lowest at 11,275.45

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.34 times

OPERATING PROFIT(Q)

Lowest at CNY 32.03 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.6 %

Here's what is working for Square Technology Group Co., Ltd.

Raw Material Cost

Fallen by -5.19% (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 Square Technology Group Co., Ltd.

Net Profit

At CNY 54.5 MM has Grown at -58.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 0.42 MM has Grown at 21,730.96%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 372.42 MM has Fallen at -12.56%

over average net sales of the previous four periods of CNY 425.9 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 11,275.45

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 32.03 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.6 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 1.34 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio