Sanan Optoelectronics Co. Ltd. (600703) 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

Sanan Optoelectronics Co. Ltd.

Why is Sanan Optoelectronics Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 0.76%

The company has been able to generate a Return on Capital Employed (avg) of 0.76% 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 17.84% and Operating profit at -66.51% over the last 5 years

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 2,087.28 MM
DEBT-EQUITY RATIO (HY) Highest at 17.48 %
OPERATING PROFIT(Q) Lowest at CNY -39.97 MM

With ROE of 0.98%, it has a expensive valuation with a 2.14 Price to Book Value

Over the past year, while the stock has generated a return of 19.32%, its profits have fallen by -5.6%

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 Other Electrical Equipment)

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

Is Sanan Optoelectronics Co. Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Sanan Optoelectronics Co. Ltd.

11.69%

0.56

37.07%

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)

17.84%

EBIT Growth (5y)

-66.51%

EBIT to Interest (avg)

0.62

Debt to EBITDA (avg)

1.07

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

0.31

Tax Ratio

18.90%

Dividend Payout Ratio

39.45%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

0.76%

ROE (avg)

2.09%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

218

Industry P/E

Price to Book Value

2.14

EV to EBIT

-907.13

EV to EBITDA

21.07

EV to Capital Employed

1.98

EV to Sales

4.77

PEG Ratio

Dividend Yield

0.13%

ROCE (Latest)

-0.22%

ROE (Latest)

0.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

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

5What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 2.89 times

NET SALES(Q)

Highest at CNY 4,829.89 MM

RAW MATERIAL COST(Y)

Fallen by -51.85% (YoY

-23What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 2,087.28 MM

DEBT-EQUITY RATIO (HY)

Highest at 17.48 %

OPERATING PROFIT(Q)

Lowest at CNY -39.97 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.83 %

PRE-TAX PROFIT(Q)

Lowest at CNY -62.79 MM

NET PROFIT(Q)

Lowest at CNY -107.31 MM

EPS(Q)

Lowest at CNY -0.02

Here's what is working for Sanan Optoelectronics Co. Ltd.

Net Sales

Highest at CNY 4,829.89 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 2.89 times and Grown

In each half year 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 -51.85% (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 Sanan Optoelectronics Co. Ltd.

Pre-Tax Profit

At CNY -62.79 MM has Fallen at -161.08%

over average net sales of the previous four periods of CNY 102.79 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -107.31 MM has Fallen at -228.53%

over average net sales of the previous four periods of CNY 83.49 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 17.48 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Cash Flow

Lowest at CNY 2,087.28 MM

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 -39.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.83 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -62.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -107.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)