Guangzhou Sanfu New Materials Technology 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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guangzhou Sanfu New Materials Technology Co., Ltd.

Why is Guangzhou Sanfu New Materials Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.40%

The company has been able to generate a Return on Capital Employed (avg) of 1.40% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 9.05% and Operating profit at -189.33% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 1.67% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.05% and Operating profit at -189.33% over the last 5 years

With a fall in Net Sales of -16.91%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 4 consecutive quarters
NET PROFIT(9M) At CNY -29.05 MM has Grown at -71.33%
NET SALES(Q) At CNY 114.41 MM has Fallen at -16.91%
PRE-TAX PROFIT(Q) At CNY -14.6 MM has Fallen at -57.74%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Guangzhou Sanfu New Materials Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangzhou Sanfu New Materials Technology Co., Ltd.

36.93%

1.30

55.05%

China Shanghai Composite

16.67%

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)

9.05%

EBIT Growth (5y)

-189.33%

EBIT to Interest (avg)

-0.18

Debt to EBITDA (avg)

9.67

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

0.62

Tax Ratio

73.99%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.40%

ROE (avg)

1.67%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

10.44

EV to EBIT

-236.50

EV to EBITDA

472.19

EV to Capital Employed

7.98

EV to Sales

12.33

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.38%

ROE (Latest)

-3.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 5.86 MM

RAW MATERIAL COST(Y)

Fallen by -10.1% (YoY

-26What is not working for the Company

NET PROFIT(9M)

At CNY -29.05 MM has Grown at -71.33%

NET SALES(Q)

At CNY 114.41 MM has Fallen at -16.91%

PRE-TAX PROFIT(Q)

At CNY -14.6 MM has Fallen at -57.74%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.26 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.2 times

INTEREST(Q)

Highest at CNY 4.58 MM

Here's what is working for Guangzhou Sanfu New Materials Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 5.86 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -10.1% (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 Guangzhou Sanfu New Materials Technology Co., Ltd.

Net Profit

At CNY -29.05 MM has Grown at -71.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 114.41 MM has Fallen at -16.91%

over average net sales of the previous four periods of CNY 137.7 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -14.6 MM has Fallen at -57.74%

over average net sales of the previous four periods of CNY -9.26 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

At CNY 4.58 MM has Grown at 51.87%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 4.58 MM

in the last five periods and Increased by 51.87% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 2.26 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 1.2 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio