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 23.94% and Operating profit at -8.36% over the last 5 years

Flat results in Sep 25

DEBT-EQUITY RATIO (HY) Highest at -23.99 %
INTEREST(Q) At CNY 2.42 MM has Grown at 77.65%
INTEREST COVERAGE RATIO(Q) Lowest at 1,647.33

With ROE of 4.79%, it has a fair valuation with a 3.38 Price to Book Value

Over the past year, while the stock has generated a return of -2.31%, its profits have risen by 197.8% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.31% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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.

-1.86%

0.29

44.23%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.94%

EBIT Growth (5y)

-8.36%

EBIT to Interest (avg)

23.23

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

0.57

Tax Ratio

8.09%

Dividend Payout Ratio

20.63%

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

3.38

EV to EBIT

172.01

EV to EBITDA

46.37

EV to Capital Employed

4.33

EV to Sales

4.94

PEG Ratio

0.36

Dividend Yield

0.08%

ROCE (Latest)

2.52%

ROE (Latest)

4.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

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

14What is working for the Company

NET PROFIT(HY)

At CNY 136.47 MM has Grown at 122.96%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.11 times

NET SALES(Q)

Highest at CNY 1,848.19 MM

-12What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -23.99 %

INTEREST(Q)

At CNY 2.42 MM has Grown at 77.65%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,647.33

PRE-TAX PROFIT(Q)

At CNY 59.69 MM has Fallen at -53.62%

RAW MATERIAL COST(Y)

Grown by 15.33% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 39.8 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.15 %

NET PROFIT(Q)

At CNY 70.57 MM has Fallen at -38.84%

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

Net Sales

Highest at CNY 1,848.19 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 1,848.19 MM has Grown at 17.66%

over average net sales of the previous four periods of CNY 1,570.85 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 3.11 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.

Interest

At CNY 2.42 MM has Grown at 77.65%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,647.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 59.69 MM has Fallen at -53.62%

over average net sales of the previous four periods of CNY 128.68 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at -23.99 % 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

Operating Profit

Lowest at CNY 39.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 70.57 MM has Fallen at -38.84%

over average net sales of the previous four periods of CNY 115.39 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 15.33% (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