WCON Electronics (Guangdong) 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

WCON Electronics (Guangdong) Co., Ltd.

Why is WCON Electronics (Guangdong) Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 16.15% and Operating profit at 9.70% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 113.19 MM
DEBT-EQUITY RATIO (HY) Highest at -44.81 %
OPERATING PROFIT MARGIN(Q) Lowest at 16.62 %

With ROE of 5.10%, it has a attractive valuation with a 0.83 Price to Book Value

Over the past year, while the stock has generated a return of 4.95%, its profits have fallen by -6.3%
At the current price, the company has a high dividend yield of 1.1

Underperformed the market in the last 1 year

The stock has generated a return of 4.95% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.45%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to WCON Electronics (Guangdong) Co., Ltd. should be less than 10%
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 WCON Electronics (Guangdong) Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

WCON Electronics (Guangdong) Co., Ltd.

7.91%

0.18

38.62%

China Shanghai Composite

15.45%

1.03

14.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.15%

EBIT Growth (5y)

9.70%

EBIT to Interest (avg)

90.94

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

0.28

Tax Ratio

9.72%

Dividend Payout Ratio

64.10%

Pledged Shares

Institutional Holding

ROCE (avg)

12.89%

ROE (avg)

5.84%

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

0.83

EV to EBIT

6.46

EV to EBITDA

4.13

EV to Capital Employed

0.67

EV to Sales

1.03

PEG Ratio

Dividend Yield

1.06%

ROCE (Latest)

10.30%

ROE (Latest)

5.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -8.29% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.1 times

NET SALES(Q)

At CNY 175.63 MM has Grown at 22.25%

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 113.19 MM

DEBT-EQUITY RATIO (HY)

Highest at -44.81 %

OPERATING PROFIT MARGIN(Q)

Lowest at 16.62 %

Here's what is working for WCON Electronics (Guangdong) Co., Ltd.

Net Sales

At CNY 175.63 MM has Grown at 22.25%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 3.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -8.29% (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 WCON Electronics (Guangdong) Co., Ltd.

Operating Cash Flow

Lowest at CNY 113.19 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -44.81 % 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 Margin

Lowest at 16.62 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales