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

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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. ?

Poor Management Efficiency with a low ROCE of 3.15%

The company has been able to generate a Return on Capital Employed (avg) of 3.15% 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 -21.22% and Operating profit at -192.35% over the last 5 years

Negative results in Mar 25

INTEREST(HY) At CNY 5.32 MM has Grown at 79.48%
OPERATING CASH FLOW(Y) Lowest at CNY -97.38 MM
NET SALES(Q) At CNY 85.66 MM has Fallen at -13.38%

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 -12.16%, its profits have risen by 27.5%

Below par performance in long term as well as near term

Along with generating -12.16% 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, High Return

Absolute

Risk Adjusted

Volatility

Xi'An Tian He Defense Technology Co. Ltd.

3.4%

0.64

50.65%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-21.22%

EBIT Growth (5y)

-192.35%

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

3.29

EV to EBIT

-38.48

EV to EBITDA

-75.41

EV to Capital Employed

2.77

EV to Sales

14.43

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.20%

ROE (Latest)

-9.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

3What is working for the Company

NET PROFIT(HY)

Higher at CNY -64.95 MM

-19What is not working for the Company

INTEREST(HY)

At CNY 5.32 MM has Grown at 79.48%

OPERATING CASH FLOW(Y)

Lowest at CNY -97.38 MM

NET SALES(Q)

At CNY 85.66 MM has Fallen at -13.38%

RAW MATERIAL COST(Y)

Grown by 33.12% (YoY

CASH AND EQV(HY)

Lowest at CNY 250.15 MM

DEBT-EQUITY RATIO (HY)

Highest at 30.57 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.9%

OPERATING PROFIT(Q)

Lowest at CNY -33.61 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -39.24 %

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

Net Profit

Higher at CNY -64.95 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Here's what is not working for Xi'An Tian He Defense Technology Co. Ltd.

Interest

At CNY 5.32 MM has Grown at 79.48%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -97.38 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)

Net Sales

At CNY 85.66 MM has Fallen at -13.38%

over average net sales of the previous four periods of CNY 98.89 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -33.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -39.24 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 250.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 30.57 %

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

Debtors Turnover Ratio

Lowest at 1.9%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 33.12% (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