Xi'An Tian He Defense Technology Co. Ltd. (300397) 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

Xi'An Tian He Defense Technology Co. Ltd.

Why is Xi'An Tian He Defense Technology Co. Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -20.42% and Operating profit at -188.89% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Sep 25

NET PROFIT(9M) At CNY -82.9 MM has Grown at -30%
OPERATING CASH FLOW(Y) Lowest at CNY -96.97 MM
CASH AND EQV(HY) Lowest at CNY 273.51 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -25.87%, its profits have risen by 27.5%

Below par performance in long term as well as near term

Along with generating -25.87% 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 Aerospace & Defense)

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

Is Xi'An Tian He Defense Technology Co. Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Xi'An Tian He Defense Technology Co. Ltd.

-16.46%

0.47

53.33%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-20.42%

EBIT Growth (5y)

-188.89%

EBIT to Interest (avg)

-18.18

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

0.19

Tax Ratio

3.43%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.15%

ROE (avg)

2.26%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

4.24

EV to EBIT

-48.65

EV to EBITDA

-95.33

EV to Capital Employed

3.50

EV to Sales

18.24

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.20%

ROE (Latest)

-9.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

12What is working for the Company

NET SALES(HY)

At CNY 178.78 MM has Grown at 26.64%

ROCE(HY)

Highest at -8.25%

NET PROFIT(Q)

Highest at CNY -25.12 MM

RAW MATERIAL COST(Y)

Fallen by -1,405.14% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY -27.45 MM

EPS(Q)

Highest at CNY -0.05

-18What is not working for the Company

NET PROFIT(9M)

At CNY -82.9 MM has Grown at -30%

OPERATING CASH FLOW(Y)

Lowest at CNY -96.97 MM

CASH AND EQV(HY)

Lowest at CNY 273.51 MM

DEBT-EQUITY RATIO (HY)

Highest at 39.1 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.98 times

INTEREST(Q)

Highest at CNY 3.37 MM

OPERATING PROFIT(Q)

Lowest at CNY -24.1 MM

Here's what is working for Xi'An Tian He Defense Technology Co. Ltd.

Net Profit

Highest at CNY -25.12 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 178.78 MM has Grown at 26.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY -27.45 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

EPS

Highest at CNY -0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -1,405.14% (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 Xi'An Tian He Defense Technology Co. Ltd.

Operating Cash Flow

Lowest at CNY -96.97 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 3.37 MM

in the last five periods and Increased by 5.48% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -24.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Cash and Eqv

Lowest at CNY 273.51 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 39.1 %

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

Inventory Turnover Ratio

Lowest at 0.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio