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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guangdong Songfa Ceramics Co., Ltd.

Why is Guangdong Songfa Ceramics Co., Ltd. ?

With a growth in Net Profit of 312.6%, the company declared Outstanding results in Sep 25

NET SALES(Q) At CNY 5,078.71 MM has Grown at 196.97%
PRE-TAX PROFIT(Q) At CNY 843.81 MM has Grown at 303.8%
NET PROFIT(Q) At CNY 622.09 MM has Grown at 311.86%

With ROE of 17.10%, it has a attractive valuation with a 11.25 Price to Book Value

Over the past year, while the stock has generated a return of 204.21%, its profits have risen by 706.8% ; the PEG ratio of the company is 0.1

Consistent Returns over the last 3 years

Along with generating 204.21% 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.

278.18%

17.87

50.27%

China Shanghai Composite

16.78%

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)

130.94%

EBIT Growth (5y)

166.68%

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)

0.78

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

3.25

EV to EBIT

8.57

EV to EBITDA

7.93

EV to Capital Employed

2.12

EV to Sales

1.47

PEG Ratio

Dividend Yield

ROCE (Latest)

24.75%

ROE (Latest)

35.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Bullish

OBV

Mildly Bullish

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

40What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,550.84 MM

ROCE(HY)

Highest at 71.61%

INVENTORY TURNOVER RATIO(HY)

Highest at 9.26 times

NET SALES(Q)

At CNY 8,888.34 MM has Grown at 44.8%

RAW MATERIAL COST(Y)

Fallen by -11% (YoY

CASH AND EQV(HY)

Highest at CNY 16,507.47 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.89 times

PRE-TAX PROFIT(Q)

At CNY 1,324.2 MM has Grown at 66.48%

NET PROFIT(Q)

At CNY 1,095.11 MM has Grown at 64.93%

-12What is not working for the Company

INTEREST(HY)

At CNY 364.02 MM has Grown at 2,998.47%

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

Net Sales

At CNY 8,888.34 MM has Grown at 64.3%

over average net sales of the previous four periods of CNY 5,409.79 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Net Sales

At CNY 8,888.34 MM has Grown at 44.8%

over average net sales of the previous four periods of CNY 6,138.42 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 9.26 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at CNY 2,550.84 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 1,324.2 MM has Grown at 66.48%

over average net sales of the previous four periods of CNY 795.42 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1,095.11 MM has Grown at 64.93%

over average net sales of the previous four periods of CNY 663.98 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 16,507.47 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 4.89 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 -11% (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 Songfa Ceramics Co., Ltd.

Interest

At CNY 364.02 MM has Grown at 2,998.47%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)