Vanchip (Tianjin) 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

Vanchip (Tianjin) Technology Co., Ltd.

Why is Vanchip (Tianjin) Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.50%

The company has been able to generate a Return on Capital Employed (avg) of 2.50% 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 -5.05% and Operating profit at -2.94% over the last 5 years

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

INTEREST(HY) At CNY 2.71 MM has Grown at 94.07%

With ROE of -1.12%, it has a risky valuation with a 3.83 Price to Book Value

Over the past year, while the stock has generated a return of -3.06%, its profits have fallen by -122.8%

Below par performance in long term as well as near term

Along with generating -3.06% 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 Vanchip (Tianjin) Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Vanchip (Tianjin) Technology Co., Ltd.

5.52%

-0.21

46.24%

China Shanghai Composite

20.36%

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)

-5.05%

EBIT Growth (5y)

-2.94%

EBIT to Interest (avg)

-6.47

Debt to EBITDA (avg)

0.12

Net Debt to Equity (avg)

-0.66

Sales to Capital Employed (avg)

0.60

Tax Ratio

33.48%

Dividend Payout Ratio

75.27%

Pledged Shares

Institutional Holding

ROCE (avg)

2.50%

ROE (avg)

1.18%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

904

Industry P/E

Price to Book Value

3.84

EV to EBIT

-131.87

EV to EBITDA

12643.71

EV to Capital Employed

9.67

EV to Sales

5.83

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.33%

ROE (Latest)

0.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 528.64 MM

NET SALES(9M)

At CNY 1,817.11 MM has Grown at 18.05%

RAW MATERIAL COST(Y)

Fallen by -19.45% (YoY

NET PROFIT(9M)

Higher at CNY 4.83 MM

DEBT-EQUITY RATIO (HY)

Lowest at -68.77 %

-17What is not working for the Company

NET SALES(Q)

At CNY 482.81 MM has Fallen at -16.79%

OPERATING PROFIT(Q)

Lowest at CNY -60.58 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -12.55 %

PRE-TAX PROFIT(Q)

Lowest at CNY -48.13 MM

NET PROFIT(Q)

Lowest at CNY -48.13 MM

EPS(Q)

Lowest at CNY -0.11

Here's what is working for Vanchip (Tianjin) Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 528.64 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at -68.77 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -19.45% (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 Vanchip (Tianjin) Technology Co., Ltd.

Net Sales

At CNY 482.81 MM has Fallen at -16.79%

over average net sales of the previous four periods of CNY 580.24 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -48.13 MM has Fallen at -1,169.16%

over average net sales of the previous four periods of CNY 4.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -48.13 MM has Fallen at -542.31%

over average net sales of the previous four periods of CNY 10.88 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -60.58 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -12.55 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -48.13 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 -48.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.11

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)