Sansteel MinGuang Co., Ltd., Fujian (002110) 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

Sansteel MinGuang Co., Ltd., Fujian

Why is Sansteel MinGuang Co., Ltd., Fujian ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -3.67% and Operating profit at -47.96% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.85% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -3.67% and Operating profit at -47.96% over the last 5 years

Negative results in Mar 26

PRE-TAX PROFIT(Q) At CNY -145.01 MM has Fallen at -2,586.79%
NET PROFIT(Q) At CNY -110.25 MM has Fallen at -5,202.43%
NET SALES(HY) At CNY 21,127.48 MM has Grown at -10.94%

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 -11.41%, its profits have risen by 84.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.41% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Ferrous Metals)

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

Is Sansteel MinGuang Co., Ltd., Fujian for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sansteel MinGuang Co., Ltd., Fujian

-12.8%

-0.25

38.56%

China Shanghai Composite

23.91%

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)

-3.67%

EBIT Growth (5y)

-47.96%

EBIT to Interest (avg)

6.54

Debt to EBITDA (avg)

9.96

Net Debt to Equity (avg)

1.05

Sales to Capital Employed (avg)

1.03

Tax Ratio

19.45%

Dividend Payout Ratio

89.29%

Pledged Shares

Institutional Holding

ROCE (avg)

6.14%

ROE (avg)

5.85%

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

0.37

EV to EBIT

164.85

EV to EBITDA

17.09

EV to Capital Employed

0.69

EV to Sales

0.61

PEG Ratio

Dividend Yield

ROCE (Latest)

0.42%

ROE (Latest)

-0.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 4,193.84 MM

NET PROFIT(9M)

Higher at CNY -236.52 MM

NET SALES(Q)

Highest at CNY 11,365.52 MM

-23What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -145.01 MM has Fallen at -2,586.79%

NET PROFIT(Q)

At CNY -110.25 MM has Fallen at -5,202.43%

NET SALES(HY)

At CNY 21,127.48 MM has Grown at -10.94%

INTEREST(Q)

At CNY 85.18 MM has Grown at 10.34%

OPERATING PROFIT(Q)

Lowest at CNY -64.47 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.57 %

RAW MATERIAL COST(Y)

Grown by 34.06% (YoY

CASH AND EQV(HY)

Lowest at CNY 12,271.75 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 12.25 times

Here's what is working for Sansteel MinGuang Co., Ltd., Fujian

Operating Cash Flow

Highest at CNY 4,193.84 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 11,365.52 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Sansteel MinGuang Co., Ltd., Fujian

Pre-Tax Profit

At CNY -145.01 MM has Fallen at -2,586.79%

over average net sales of the previous four periods of CNY -5.4 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -110.25 MM has Fallen at -5,202.43%

over average net sales of the previous four periods of CNY 2.16 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 85.18 MM has Grown at 10.34%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -64.47 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.57 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 12,271.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 12.25 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 34.06% (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