ScoreWhy is Zhejiang NetSun Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 5.46%
- The company has been able to generate a Return on Capital Employed (avg) of 5.46% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 2.33% and Operating profit at -205.33% over the last 5 years
3
Flat results in Mar 26
- NET SALES(HY) At CNY 272.12 MM has Grown at -21.43%
- RAW MATERIAL COST(Y) Grown by 20.66% (YoY)
- DEBTORS TURNOVER RATIO(HY) Lowest at 1.56 times
4
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 -32.98%, its profits have risen by 57.9%
5
Below par performance in long term as well as near term
- Along with generating -32.98% 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 ReportHow much should you hold?
- Overall Portfolio exposure to Zhejiang NetSun Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Zhejiang NetSun Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Zhejiang NetSun Co., Ltd.
-18.45%
0.14
36.59%
China Shanghai Composite
3.23%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.33%
EBIT Growth (5y)
-205.33%
EBIT to Interest (avg)
-8.55
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.32
Sales to Capital Employed (avg)
0.52
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.94%
ROE (avg)
1.81%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
3.68
EV to EBIT
-84.55
EV to EBITDA
-95.63
EV to Capital Employed
6.45
EV to Sales
5.31
PEG Ratio
NA
Dividend Yield
0.39%
ROCE (Latest)
-7.63%
ROE (Latest)
-2.72%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 97.32 MM
PRE-TAX PROFIT(Q)
At CNY 3.45 MM has Grown at 198.54%
INVENTORY TURNOVER RATIO(HY)
Highest at 25.23 times
NET SALES(Q)
Highest at CNY 235.72 MM
NET PROFIT(Q)
At CNY -0.1 MM has Grown at 98.34%
-1What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 18.57% (YoY
Here's what is working for Zhejiang NetSun Co., Ltd.
Net Sales
At CNY 235.72 MM has Grown at 79.79%
over average net sales of the previous four periods of CNY 131.11 MMMOJO Watch
Near term sales trend is extremely positive
Net Sales (CNY MM)
Operating Cash Flow
Highest at CNY 97.32 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Pre-Tax Profit
At CNY 3.45 MM has Grown at 198.54%
over average net sales of the previous four periods of CNY -3.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Sales
Highest at CNY 235.72 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Profit
At CNY -0.1 MM has Grown at 98.34%
over average net sales of the previous four periods of CNY -5.86 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 25.23 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Zhejiang NetSun Co., Ltd.
Raw Material Cost
Grown by 18.57% (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
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