Sailun Group Co., Ltd. (601058) 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

Sailun Group Co., Ltd.

Why is Sailun Group Co., Ltd. ?

Negative results in Sep 25

INTEREST(HY) At CNY 252.74 MM has Grown at 25.05%
OPERATING CASH FLOW(Y) Lowest at CNY 3,352.89 MM
RAW MATERIAL COST(Y) Grown by 6.52% (YoY)

With ROE of 18.81%, it has a very attractive valuation with a 2.34 Price to Book Value

Over the past year, while the stock has generated a return of -4.61%, its profits have fallen by -9.4%
At the current price, the company has a high dividend yield of 3.4

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.61% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sailun Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Sailun Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sailun Group Co., Ltd.

-11.75%

0.09

29.80%

China Shanghai Composite

13.33%

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)

19.06%

EBIT Growth (5y)

17.68%

EBIT to Interest (avg)

8.23

Debt to EBITDA (avg)

1.73

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

0.94

Tax Ratio

11.25%

Dividend Payout Ratio

30.16%

Pledged Shares

Institutional Holding

ROCE (avg)

14.03%

ROE (avg)

16.46%

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

2.34

EV to EBIT

12.46

EV to EBITDA

8.91

EV to Capital Employed

1.91

EV to Sales

1.70

PEG Ratio

Dividend Yield

3.37%

ROCE (Latest)

15.36%

ROE (Latest)

18.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

INVENTORY TURNOVER RATIO(HY)

Highest at 4.49 times

NET SALES(Q)

Highest at CNY 10,000.4 MM

-15What is not working for the Company

INTEREST(HY)

At CNY 252.74 MM has Grown at 25.05%

OPERATING CASH FLOW(Y)

Lowest at CNY 3,352.89 MM

RAW MATERIAL COST(Y)

Grown by 6.52% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.85 times

OPERATING PROFIT(Q)

Lowest at CNY 1,387.25 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.87 %

Here's what is working for Sailun Group Co., Ltd.

Net Sales

Highest at CNY 10,000.4 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 10,000.4 MM has Grown at 16.84%

over average net sales of the previous four periods of CNY 8,558.78 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 4.49 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Sailun Group Co., Ltd.

Interest

At CNY 252.74 MM has Grown at 25.05%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 3,352.89 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)

Operating Profit

Lowest at CNY 1,387.25 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 13.87 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 4.85 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 6.52% (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