Topsec Technologies Group, Inc. (002212) 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

Topsec Technologies Group, Inc.

Why is Topsec Technologies Group, Inc. ?

Poor Management Efficiency with a low ROCE of 1.14%

The company has been able to generate a Return on Capital Employed (avg) of 1.14% 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 -13.91% and Operating profit at -178.61% over the last 5 years

The company has declared negative results for the last 3 consecutive quarters

The company has declared negative results in Sep 25 after 4 consecutive negative quarters
INTEREST(HY) At CNY 3.77 MM has Grown at 50.29%
OPERATING CASH FLOW(Y) Lowest at CNY -412.18 MM
NET PROFIT(Q) At CNY -100.74 MM has Fallen at -47.31%

Below par performance in long term as well as near term

Along with generating -8.16% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Electronics & Appliances)

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

Is Topsec Technologies Group, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Topsec Technologies Group, Inc.

-15.16%

0.50

46.05%

China Shanghai Composite

21.43%

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)

-13.91%

EBIT Growth (5y)

-178.61%

EBIT to Interest (avg)

-1.91

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.29

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.14%

ROE (avg)

1.96%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

277

Industry P/E

Price to Book Value

0.77

EV to EBIT

-59.94

EV to EBITDA

53.61

EV to Capital Employed

0.77

EV to Sales

2.96

PEG Ratio

Dividend Yield

0.32%

ROCE (Latest)

-1.28%

ROE (Latest)

0.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

3What is working for the Company

NET PROFIT(HY)

Higher at CNY 194.1 MM

RAW MATERIAL COST(Y)

Fallen by -4.65% (YoY

-29What is not working for the Company

INTEREST(HY)

At CNY 3.77 MM has Grown at 50.29%

OPERATING CASH FLOW(Y)

Lowest at CNY -412.18 MM

NET PROFIT(Q)

At CNY -100.74 MM has Fallen at -47.31%

CASH AND EQV(HY)

Lowest at CNY 973.69 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.12 times

NET SALES(Q)

Lowest at CNY 225.15 MM

OPERATING PROFIT(Q)

Lowest at CNY -237.72 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -105.58 %

PRE-TAX PROFIT(Q)

Fallen at -33.48%

Here's what is working for Topsec Technologies Group, Inc.

Raw Material Cost

Fallen by -4.65% (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 Topsec Technologies Group, Inc.

Interest

At CNY 3.77 MM has Grown at 50.29%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 225.15 MM has Fallen at -32.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Profit

At CNY -100.74 MM has Fallen at -47.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -412.18 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 225.15 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -237.72 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -105.58 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -33.48%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 973.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.12 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio