Wuhan KOTEI Informatics 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

Wuhan KOTEI Informatics Co., Ltd.

Why is Wuhan KOTEI Informatics Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.35%

The company has been able to generate a Return on Capital Employed (avg) of 4.35% 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 13.71% and Operating profit at -34.81% over the last 5 years

With a growth in Net Sales of 16.37%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 165.74 MM
NET SALES(HY) At CNY 286.85 MM has Grown at 29.9%
NET PROFIT(HY) At CNY 20.74 MM has Grown at 45.78%

With ROE of 4.35%, it has a attractive valuation with a 2.47 Price to Book Value

Over the past year, while the stock has generated a return of -0.60%, its profits have risen by 315.3% ; the PEG ratio of the company is 0.2

Below par performance in long term as well as near term

Along with generating -0.60% 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 hold?

Overall Portfolio exposure to Wuhan KOTEI Informatics 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 Wuhan KOTEI Informatics Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wuhan KOTEI Informatics Co., Ltd.

-0.6%

1.15

42.71%

China Shanghai Composite

16.01%

1.07

14.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.71%

EBIT Growth (5y)

-34.81%

EBIT to Interest (avg)

18.16

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.57

Sales to Capital Employed (avg)

0.31

Tax Ratio

7.49%

Dividend Payout Ratio

62.11%

Pledged Shares

Institutional Holding

ROCE (avg)

4.35%

ROE (avg)

2.04%

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

2.47

EV to EBIT

184.29

EV to EBITDA

62.38

EV to Capital Employed

4.85

EV to Sales

5.57

PEG Ratio

0.18

Dividend Yield

ROCE (Latest)

2.63%

ROE (Latest)

4.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 165.74 MM

NET SALES(HY)

At CNY 286.85 MM has Grown at 29.9%

NET PROFIT(HY)

At CNY 20.74 MM has Grown at 45.78%

ROCE(HY)

Highest at 3.17%

RAW MATERIAL COST(Y)

Fallen by -7.5% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 2.21 times

-11What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY -1.85 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.28 %

PRE-TAX PROFIT(Q)

Lowest at CNY -1.78 MM

NET PROFIT(Q)

Lowest at CNY 1.86 MM

EPS(Q)

Lowest at CNY 0.02

Here's what is working for Wuhan KOTEI Informatics Co., Ltd.

Operating Cash Flow

Highest at CNY 165.74 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)

Net Sales

At CNY 286.85 MM has Grown at 29.9%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 2.21 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -7.5% (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 Wuhan KOTEI Informatics Co., Ltd.

Pre-Tax Profit

At CNY -1.78 MM has Fallen at -107.27%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1.86 MM has Fallen at -92.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -1.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -1.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -1.78 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 1.86 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)