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Union Optech Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Electronics & Appliances
  • ISIN: CNE1000034L6
  • SHE: 300691
CNY
21.68
0.72 (3.44%)

Sep 24

SHE

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Union Optech Co., Ltd.

Why is Union Optech Co., Ltd. ?

1
Poor Management Efficiency with a low ROCE of 2.64%
  • The company has been able to generate a Return on Capital Employed (avg) of 2.64% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 7.29% and Operating profit at -168.63% over the last 5 years
3
Positive results in Mar 26
  • OPERATING CASH FLOW(Y) Highest at CNY 148.74 MM
  • RAW MATERIAL COST(Y) Fallen by 1.53% (YoY)
  • INVENTORY TURNOVER RATIO(HY) Highest at 3.24 times
4
With ROE of 1.84%, it has a expensive valuation with a 0.91 Price to Book Value
  • Over the past year, while the stock has generated a return of -17.32%, its profits have risen by 223.5% ; the PEG ratio of the company is 0.2
  • At the current price, the company has a high dividend yield of 0
5
Below par performance in long term as well as near term
  • Along with generating -17.32% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Union Optech Co., Ltd. should be less than 10%
  2. Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

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

Is Union Optech Co., Ltd. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Union Optech Co., Ltd.
6.96%
0.24
36.36%
China Shanghai Composite
0.9%
1.20
14.07%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
7.29%
EBIT Growth (5y)
-168.63%
EBIT to Interest (avg)
2.36
Debt to EBITDA (avg)
2.85
Net Debt to Equity (avg)
0.36
Sales to Capital Employed (avg)
0.78
Tax Ratio
12.99%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.61%
ROE (avg)
3.91%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
140
Industry P/E
Price to Book Value
2.58
EV to EBIT
-468.97
EV to EBITDA
68.10
EV to Capital Employed
2.21
EV to Sales
2.25
PEG Ratio
0.63
Dividend Yield
NA
ROCE (Latest)
-0.47%
ROE (Latest)
1.84%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CNY 169.15 MM

NET PROFIT(Q)

At CNY 11.69 MM has Grown at 210.96%

PRE-TAX PROFIT(Q)

At CNY 0.84 MM has Grown at 112.89%

NET SALES(Q)

Highest at CNY 596.75 MM

-10What is not working for the Company
INTEREST(HY)

At CNY 10.75 MM has Grown at 1,723.42%

RAW MATERIAL COST(Y)

Grown by 12.56% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 47.1 %

Here's what is working for Union Optech Co., Ltd.

Net Profit
At CNY 11.69 MM has Grown at 210.96%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow
Highest at CNY 169.15 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)

Pre-Tax Profit
At CNY 0.84 MM has Grown at 112.89%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales
Highest at CNY 596.75 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Union Optech Co., Ltd.

Interest
At CNY 10.75 MM has Grown at 1,723.42%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio
Highest at 47.1 %
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

Raw Material Cost
Grown by 12.56% (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

Non Operating Income
Highest at CNY 3.12 MM
in the last five periods
MOJO Watch
Increased income from non business activities may not be sustainable

Non Operating income

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