Guangdong Suqun New Material Co., Ltd. () 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 Suqun New Material Co., Ltd.

Why is Guangdong Suqun New Material Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 7.08%

The company has been able to generate a Return on Capital Employed (avg) of 7.08% 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 19.20% and Operating profit at 2.71% over the last 5 years

Positive results in Mar 25

NET SALES(HY) At CNY 412.3 MM has Grown at 100.01%
RAW MATERIAL COST(Y) Fallen by -13.88% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 3.73%

With ROE of 0.00%, it has a fair valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 272.20%, its profits have fallen by -12%
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 272.20% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong Suqun New Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Guangdong Suqun New Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Suqun New Material Co., Ltd.

289.92%

2.91

82.95%

China Shanghai Composite

15.44%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.20%

EBIT Growth (5y)

2.71%

EBIT to Interest (avg)

33.65

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

107.84

Tax Ratio

14.33%

Dividend Payout Ratio

19.64%

Pledged Shares

Institutional Holding

ROCE (avg)

7.08%

ROE (avg)

5.16%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

231

Industry P/E

Price to Book Value

EV to EBIT

206.12

EV to EBITDA

113.72

EV to Capital Employed

EV to Sales

15.53

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

ROE (Latest)

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

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

17What is working for the Company

NET SALES(HY)

At CNY 412.3 MM has Grown at 100.01%

RAW MATERIAL COST(Y)

Fallen by -13.88% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.73%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.08%

PRE-TAX PROFIT(Q)

At CNY 18.79 MM has Grown at 76.75%

NET PROFIT(Q)

At CNY 17.19 MM has Grown at 74.22%

-14What is not working for the Company

INTEREST(HY)

At CNY 1.76 MM has Grown at 946.79%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,907.87

OPERATING PROFIT MARGIN(Q)

Lowest at 9.17 %

Here's what is working for Guangdong Suqun New Material Co., Ltd.

Net Sales

At CNY 183.05 MM has Grown at 93.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 18.79 MM has Grown at 76.75%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 17.19 MM has Grown at 74.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 3.73%

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 3.08%

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 -13.88% (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 Suqun New Material Co., Ltd.

Interest

At CNY 1.76 MM has Grown at 946.79%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,907.87 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 9.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales