Suzhou Mingzhi Technology 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 Mingzhi Technology Co., Ltd.

Why is Suzhou Mingzhi Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.78%

The company has been able to generate a Return on Capital Employed (avg) of 5.78% 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 -3.17% and Operating profit at -35.02% over the last 5 years

The company has declared negative results in Mar'2025 after 4 consecutive positive quarters

NET SALES(Q) Fallen at -15.55%
OPERATING PROFIT(Q) Lowest at CNY -3.77 MM
OPERATING PROFIT MARGIN(Q) Lowest at -3.2 %

Underperformed the market in the last 1 year

The stock has generated a return of 9.61% 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 Suzhou Mingzhi Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Suzhou Mingzhi Technology Co., Ltd.

9.56%

1.62

36.24%

China Shanghai Composite

18.87%

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)

-7.11%

EBIT Growth (5y)

-27.65%

EBIT to Interest (avg)

10.40

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

0.48

Tax Ratio

3.22%

Dividend Payout Ratio

77.24%

Pledged Shares

Institutional Holding

ROCE (avg)

5.78%

ROE (avg)

4.45%

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

2.10

EV to EBIT

86.80

EV to EBITDA

35.85

EV to Capital Employed

2.23

EV to Sales

4.14

PEG Ratio

Dividend Yield

0.67%

ROCE (Latest)

2.57%

ROE (Latest)

4.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 205.62 MM

RAW MATERIAL COST(Y)

Fallen by -22.32% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.71 times

-17What is not working for the Company

NET SALES(HY)

At CNY 280.56 MM has Grown at -10.33%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,719.73

DEBT-EQUITY RATIO (HY)

Highest at -11.19 %

OPERATING PROFIT(Q)

Lowest at CNY 2.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.17 %

PRE-TAX PROFIT(Q)

Lowest at CNY -0.34 MM

NET PROFIT(Q)

Lowest at CNY -0.23 MM

Here's what is working for Suzhou Mingzhi Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 205.62 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 2.71 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 -22.32% (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 Suzhou Mingzhi Technology Co., Ltd.

Pre-Tax Profit

At CNY -0.34 MM has Fallen at -102.75%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -0.23 MM has Fallen at -101.9%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 1,719.73

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 280.56 MM has Grown at -10.33%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 2.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -0.34 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -0.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at -11.19 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio