Thunder Software Technology Co., Ltd. (300496) 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

Thunder Software Technology Co., Ltd.

Why is Thunder Software Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 22.06% and Operating profit at -1.90% over the last 5 years

Flat results in Mar 26

INTEREST(9M) At CNY 6.37 MM has Grown at 12.06%
DEBT-EQUITY RATIO (HY) Highest at -19.54 %
RAW MATERIAL COST(Y) Grown by 5.29% (YoY)

With ROE of 4.83%, it has a attractive valuation with a 2.29 Price to Book Value

Over the past year, while the stock has generated a return of 21.96%, its profits have risen by 25% ; the PEG ratio of the company is 3.5
At the current price, the company has a high dividend yield of 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Thunder Software 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 Thunder Software Technology Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Thunder Software Technology Co., Ltd.

18.98%

0.48

43.65%

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)

22.06%

EBIT Growth (5y)

-1.90%

EBIT to Interest (avg)

23.23

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

0.60

Tax Ratio

8.09%

Dividend Payout Ratio

18.89%

Pledged Shares

Institutional Holding

ROCE (avg)

9.19%

ROE (avg)

7.83%

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

2.29

EV to EBIT

56.24

EV to EBITDA

27.06

EV to Capital Employed

2.62

EV to Sales

2.70

PEG Ratio

3.52

Dividend Yield

0.36%

ROCE (Latest)

4.65%

ROE (Latest)

4.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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 946.02 MM

NET SALES(HY)

At CNY 4,378.95 MM has Grown at 38.61%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.43 times

-10What is not working for the Company

INTEREST(9M)

At CNY 6.37 MM has Grown at 12.06%

DEBT-EQUITY RATIO (HY)

Highest at -19.54 %

RAW MATERIAL COST(Y)

Grown by 5.29% (YoY

NET SALES(Q)

At CNY 1,748.55 MM has Fallen at -10.08%

OPERATING PROFIT(Q)

Lowest at CNY 87.86 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.02 %

PRE-TAX PROFIT(Q)

At CNY 91.85 MM has Fallen at -31.81%

Here's what is working for Thunder Software Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 946.02 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)

Debtors Turnover Ratio

Highest at 3.43 times

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 Thunder Software Technology Co., Ltd.

Debt-Equity Ratio

Highest at -19.54 % and Grown

In each half year 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

Interest

At CNY 6.37 MM has Grown at 12.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 1,748.55 MM has Fallen at -10.08%

over average net sales of the previous four periods of CNY 1,944.51 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 87.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 91.85 MM has Fallen at -31.81%

over average net sales of the previous four periods of CNY 134.69 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 5.29% (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