Sanxiang Advanced Materials Co., Ltd (603663) 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

Sanxiang Advanced Materials Co., Ltd

Why is Sanxiang Advanced Materials Co., Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 9.41% and Operating profit at -4.36% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

INTEREST(Q) At CNY 2.32 MM has Grown at 29.01%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.13 times

With ROE of 3.17%, it has a very expensive valuation with a 8.38 Price to Book Value

Over the past year, while the stock has generated a return of 91.49%, its profits have fallen by -22.3%
At the current price, the company has a high dividend yield of 0.3

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 Minerals & Mining)

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

Is Sanxiang Advanced Materials Co., Ltd for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sanxiang Advanced Materials Co., Ltd

77.35%

5.64

47.62%

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)

9.41%

EBIT Growth (5y)

-4.36%

EBIT to Interest (avg)

13.83

Debt to EBITDA (avg)

1.98

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

0.61

Tax Ratio

5.30%

Dividend Payout Ratio

41.92%

Pledged Shares

Institutional Holding

ROCE (avg)

8.59%

ROE (avg)

8.79%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

264

Industry P/E

Price to Book Value

8.38

EV to EBIT

235.52

EV to EBITDA

94.31

EV to Capital Employed

7.05

EV to Sales

11.74

PEG Ratio

Dividend Yield

0.28%

ROCE (Latest)

2.99%

ROE (Latest)

3.17%

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

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 140.54 MM

PRE-TAX PROFIT(Q)

At CNY 35.04 MM has Grown at 205.06%

RAW MATERIAL COST(Y)

Fallen by -19.94% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 19.86 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.94 times

NET SALES(Q)

At CNY 296.17 MM has Grown at 18.08%

NET PROFIT(Q)

Highest at CNY 33.05 MM

-3What is not working for the Company

INTEREST(Q)

At CNY 2.32 MM has Grown at 29.01%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.13 times

Here's what is working for Sanxiang Advanced Materials Co., Ltd

Pre-Tax Profit

At CNY 35.04 MM has Grown at 205.06%

over average net sales of the previous four periods of CNY 11.49 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 33.05 MM has Grown at 128.29%

over average net sales of the previous four periods of CNY 14.48 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 140.54 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

At CNY 296.17 MM has Grown at 18.08%

over average net sales of the previous four periods of CNY 250.83 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 33.05 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 19.86 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.94 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -19.94% (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 Sanxiang Advanced Materials Co., Ltd

Interest

At CNY 2.32 MM has Grown at 29.01%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 2.13 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio