Sanlux Co. Ltd. (002224) 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

Sanlux Co. Ltd.

Why is Sanlux Co. Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 3.55% and Operating profit at -161.61% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.30% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.55% and Operating profit at -161.61% over the last 5 years

The company has declared negative results for the last 4 consecutive quarters

PRE-TAX PROFIT(Q) At CNY 2.63 MM has Fallen at -91.01%
NET PROFIT(Q) At CNY 9.33 MM has Fallen at -63.64%
ROCE(HY) Lowest at -0.45%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -23.46%, its profits have fallen by -125.1%
At the current price, the company has a high dividend yield of 0.8

Below par performance in long term as well as near term

Along with generating -23.46% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Industrial Products)

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

Is Sanlux Co. Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sanlux Co. Ltd.

-100.0%

-0.57

25.43%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.55%

EBIT Growth (5y)

-161.61%

EBIT to Interest (avg)

6.80

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

0.28

Tax Ratio

34.22%

Dividend Payout Ratio

72.12%

Pledged Shares

Institutional Holding

ROCE (avg)

6.02%

ROE (avg)

4.30%

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

0.71

EV to EBIT

-89.65

EV to EBITDA

24.07

EV to Capital Employed

0.61

EV to Sales

1.35

PEG Ratio

Dividend Yield

0.83%

ROCE (Latest)

-0.68%

ROE (Latest)

-0.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

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

1What is working for the Company

NET SALES(Q)

At CNY 222.78 MM has Grown at 21.1%

-27What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 2.63 MM has Fallen at -91.01%

NET PROFIT(Q)

At CNY 9.33 MM has Fallen at -63.64%

ROCE(HY)

Lowest at -0.45%

DEBT-EQUITY RATIO (HY)

Highest at -25.31 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.4 times

INTEREST(Q)

At CNY 2.06 MM has Grown at 2,698.96%

INTEREST COVERAGE RATIO(Q)

Lowest at 271.15

RAW MATERIAL COST(Y)

Grown by 23.97% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 5.6 MM

EPS(Q)

Lowest at CNY -0.02

Here's what is working for Sanlux Co. Ltd.

Net Sales

At CNY 222.78 MM has Grown at 21.1%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Sanlux Co. Ltd.

Pre-Tax Profit

At CNY 2.63 MM has Fallen at -91.01%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 9.33 MM has Fallen at -63.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 2.06 MM has Grown at 2,698.96%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 271.15

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -25.31 % 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

Inventory Turnover Ratio

Lowest at 2.4 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at CNY 5.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating 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)

Raw Material Cost

Grown by 23.97% (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