Suzhou Centec Communications Co., Ltd. () 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

Suzhou Centec Communications Co., Ltd.

Why is Suzhou Centec Communications Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of 42.30% and Operating profit at -152.71% over the last 5 years

With a growth in Net Sales of 16.27%, the company declared Very Positive results in Sep 25

ROCE(HY) Highest at 0.74%
RAW MATERIAL COST(Y) Fallen by -37.43% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at -63.22 %

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 162.21%, its profits have fallen by -264%

Market Beating Performance

The stock has generated a return of 162.21% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Suzhou Centec Communications Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

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

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

Is Suzhou Centec Communications Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Suzhou Centec Communications Co., Ltd.

171.28%

5.24

72.03%

China Shanghai Composite

17.07%

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)

42.30%

EBIT Growth (5y)

-152.71%

EBIT to Interest (avg)

-17.74

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.60

Sales to Capital Employed (avg)

0.43

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

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

13.36

EV to EBIT

-310.51

EV to EBITDA

-512.59

EV to Capital Employed

32.98

EV to Sales

28.18

PEG Ratio

Dividend Yield

ROCE (Latest)

-10.62%

ROE (Latest)

-1.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

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

26What is working for the Company

ROCE(HY)

Highest at 0.74%

RAW MATERIAL COST(Y)

Fallen by -37.43% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -63.22 %

INVENTORY TURNOVER RATIO(HY)

Highest at 0.91 times

NET SALES(Q)

Highest at CNY 323.65 MM

OPERATING PROFIT(Q)

Highest at CNY 24.62 MM

OPERATING PROFIT MARGIN(Q)

Highest at 7.61 %

PRE-TAX PROFIT(Q)

Highest at CNY 33.13 MM

NET PROFIT(Q)

Highest at CNY 33.06 MM

EPS(Q)

Highest at CNY 0.08

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Suzhou Centec Communications Co., Ltd.

Pre-Tax Profit

At CNY 33.13 MM has Grown at 269.29%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 33.06 MM has Grown at 268.95%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 323.65 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 24.62 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 7.61 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 33.13 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 33.06 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -63.22 %

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 0.91 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -37.43% (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