Fangda Special Steel Technology Co. Ltd. (600507) 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

Fangda Special Steel Technology Co. Ltd.

Why is Fangda Special Steel Technology Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -0.29% and Operating profit at -19.38% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET SALES(HY) At CNY 8,887.49 MM has Grown at -25.94%
DEBT-EQUITY RATIO (HY) Highest at 1.87 %
INVENTORY TURNOVER RATIO(HY) Lowest at 9.89 times

With ROE of 4.34%, it has a fair valuation with a 1.28 Price to Book Value

Over the past year, while the stock has generated a return of 65.58%, its profits have fallen by -39%
At the current price, the company has a high dividend yield of 0.6

Market Beating Performance

The stock has generated a return of 65.58% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Fangda Special Steel Technology Co. Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Fangda Special Steel Technology Co. Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Fangda Special Steel Technology Co. Ltd.

29.77%

2.25

33.92%

China Shanghai Composite

24.7%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.29%

EBIT Growth (5y)

-19.38%

EBIT to Interest (avg)

62.34

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

1.32

Tax Ratio

41.54%

Dividend Payout Ratio

30.78%

Pledged Shares

Institutional Holding

ROCE (avg)

24.75%

ROE (avg)

14.23%

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

1.28

EV to EBIT

31.35

EV to EBITDA

15.31

EV to Capital Employed

1.27

EV to Sales

0.74

PEG Ratio

Dividend Yield

0.62%

ROCE (Latest)

4.05%

ROE (Latest)

4.34%

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

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

22What is working for the Company

ROCE(HY)

Highest at 8.75%

RAW MATERIAL COST(Y)

Fallen by -2,067.27% (YoY

OPERATING PROFIT(Q)

Highest at CNY 369.68 MM

PRE-TAX PROFIT(Q)

Highest at CNY 453.37 MM

NET PROFIT(Q)

Highest at CNY 333.91 MM

EPS(Q)

Highest at CNY 0.17

-11What is not working for the Company

NET SALES(HY)

At CNY 8,887.49 MM has Grown at -25.94%

DEBT-EQUITY RATIO (HY)

Highest at 1.87 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.89 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.68 times

Here's what is working for Fangda Special Steel Technology Co. Ltd.

Pre-Tax Profit

At CNY 453.37 MM has Grown at 190.64%

over average net sales of the previous four periods of CNY 155.99 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 333.91 MM has Grown at 219.47%

over average net sales of the previous four periods of CNY 104.52 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Profit

Highest at CNY 369.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 453.37 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 333.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.17

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -2,067.27% (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 Fangda Special Steel Technology Co. Ltd.

Net Sales

At CNY 8,887.49 MM has Grown at -25.94%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 1.87 %

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 9.89 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 6.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio