Guangdong Songfa Ceramics Co., Ltd. (603268) 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

Guangdong Songfa Ceramics Co., Ltd.

Why is Guangdong Songfa Ceramics Co., Ltd. ?

With a growth in Net Sales of 11596.66%, the company declared Outstanding results in Mar 25

NET SALES(HY) At CNY 148.69 MM has Grown at 56.25%
DEBT-EQUITY RATIO (HY) Lowest at -903.92 %
INVENTORY TURNOVER RATIO(HY) Highest at 1.69%

With ROE of 17.10%, it has a attractive valuation with a 1.17 Price to Book Value

Over the past year, while the stock has generated a return of 90.71%, its profits have risen by 706.8% ; the PEG ratio of the company is 0

Consistent Returns over the last 3 years

Along with generating 90.71% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Guangdong Songfa Ceramics Co., Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is Guangdong Songfa Ceramics Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Songfa Ceramics Co., Ltd.

90.71%

12.76

48.01%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

70.14%

EBIT Growth (5y)

84.14%

EBIT to Interest (avg)

-2.57

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-8.71

Sales to Capital Employed (avg)

0.72

Tax Ratio

1.60%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.58%

ROE (avg)

0.78%

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

1.17

EV to EBIT

13.59

EV to EBITDA

12.46

EV to Capital Employed

1.05

EV to Sales

1.98

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

7.70%

ROE (Latest)

17.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

9What is working for the Company

NET SALES(HY)

At CNY 148.69 MM has Grown at 56.25%

DEBT-EQUITY RATIO (HY)

Lowest at -903.92 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.69%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.83%

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -39.63 MM

NET SALES(Q)

At CNY 56.29 MM has Fallen at -16.67%

PRE-TAX PROFIT(Q)

At CNY -21.29 MM has Fallen at -68.25%

INTEREST(9M)

At CNY 18.19 MM has Grown at 11.24%

ROCE(HY)

Lowest at -383.96%

RAW MATERIAL COST(Y)

Grown by 53.41% (YoY

CASH AND EQV(HY)

Lowest at CNY 25 MM

OPERATING PROFIT(Q)

Lowest at CNY -15.29 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -27.17 %

Here's what is working for Guangdong Songfa Ceramics Co., Ltd.

Debt-Equity Ratio

Lowest at -903.92 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.69%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.83%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Guangdong Songfa Ceramics Co., Ltd.

Net Sales

At CNY 56.29 MM has Fallen at -16.67%

over average net sales of the previous four periods of CNY 67.55 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -21.29 MM has Fallen at -68.25%

over average net sales of the previous four periods of CNY -12.65 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -39.63 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)

Interest

At CNY 18.19 MM has Grown at 11.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -15.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -27.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 25 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 53.41% (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