Guangdong Shenglu Telecommunication Tech Co., Ltd. (002446) 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

Guangdong Shenglu Telecommunication Tech Co., Ltd.

Why is Guangdong Shenglu Telecommunication Tech Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.69%

The company has been able to generate a Return on Capital Employed (avg) of 1.69% 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 1.00% and Operating profit at 29.98% over the last 5 years

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

NET PROFIT(HY) Higher at CNY 10.29 MM
ROCE(HY) Highest at 2.76%
RAW MATERIAL COST(Y) Fallen by -27.57% (YoY)

With ROE of 2.78%, it has a attractive valuation with a 3.44 Price to Book Value

Over the past year, while the stock has generated a return of 39.15%, its profits have risen by 109.3% ; the PEG ratio of the company is 1.1

Market Beating Performance

The stock has generated a return of 39.15% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.78%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong Shenglu Telecommunication Tech Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

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

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

Is Guangdong Shenglu Telecommunication Tech Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Shenglu Telecommunication Tech Co., Ltd.

39.15%

1.43

54.54%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.00%

EBIT Growth (5y)

29.98%

EBIT to Interest (avg)

-20.72

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

0.34

Tax Ratio

1.57%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.69%

ROE (avg)

2.99%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

124

Industry P/E

Price to Book Value

3.44

EV to EBIT

200.89

EV to EBITDA

98.32

EV to Capital Employed

3.61

EV to Sales

7.16

PEG Ratio

1.13

Dividend Yield

ROCE (Latest)

1.80%

ROE (Latest)

2.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

14What is working for the Company

NET PROFIT(HY)

Higher at CNY 10.29 MM

ROCE(HY)

Highest at 2.76%

RAW MATERIAL COST(Y)

Fallen by -27.57% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 1.18 times

PRE-TAX PROFIT(Q)

At CNY 29.91 MM has Grown at 67.64%

-8What is not working for the Company

INTEREST(HY)

At CNY 3.59 MM has Grown at 116.45%

OPERATING CASH FLOW(Y)

Lowest at CNY 153.93 MM

DEBT-EQUITY RATIO (HY)

Highest at -6.78 %

NET SALES(Q)

At CNY 269.61 MM has Fallen at -10.61%

Here's what is working for Guangdong Shenglu Telecommunication Tech Co., Ltd.

Net Profit

At CNY 10.29 MM has Grown at 101.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Higher at CNY 10.29 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

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

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 29.91 MM has Grown at 67.64%

over average net sales of the previous four periods of CNY 17.84 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Highest at 1.18 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 -27.57% (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 Guangdong Shenglu Telecommunication Tech Co., Ltd.

Interest

At CNY 3.59 MM has Grown at 116.45%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 153.93 MM

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 269.61 MM has Fallen at -10.61%

over average net sales of the previous four periods of CNY 301.6 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at -6.78 %

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