Sanxiang Advanced Materials Co., Ltd (603663) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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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 Management Efficiency with a low ROCE of 8.59%

The company has been able to generate a Return on Capital Employed (avg) of 8.59% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 9.01% and Operating profit at 13.46% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 8.79% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.01% and Operating profit at 13.46% over the last 5 years

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

OPERATING CASH FLOW(Y) Highest at CNY 290.21 MM
ROCE(HY) Highest at 10.66%
DEBT-EQUITY RATIO (HY) Lowest at 12.3 %

With ROE of 11.10%, it has a expensive valuation with a 28.79 Price to Book Value

Over the past year, while the stock has generated a return of 145.42%, its profits have risen by 176.1% ; the PEG ratio of the company is 1.5
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sanxiang Advanced Materials Co., Ltd should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

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

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

Is Sanxiang Advanced Materials Co., Ltd for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sanxiang Advanced Materials Co., Ltd

140.63%

3.26

76.23%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.01%

EBIT Growth (5y)

13.46%

EBIT to Interest (avg)

18.95

Debt to EBITDA (avg)

1.53

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

0.62

Tax Ratio

15.15%

Dividend Payout Ratio

25.51%

Pledged Shares

Institutional Holding

ROCE (avg)

9.07%

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

259

Industry P/E

Price to Book Value

28.79

EV to EBIT

214.57

EV to EBITDA

166.42

EV to Capital Employed

25.70

EV to Sales

33.64

PEG Ratio

1.47

Dividend Yield

0.08%

ROCE (Latest)

11.98%

ROE (Latest)

11.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 290.21 MM

ROCE(HY)

Highest at 10.66%

DEBT-EQUITY RATIO (HY)

Lowest at 12.3 %

RAW MATERIAL COST(Y)

Fallen by -29.91% (YoY

CASH AND EQV(HY)

Highest at CNY 458.99 MM

NET PROFIT(Q)

Highest at CNY 40.03 MM

-2What is not working for the Company

INTEREST(Q)

At CNY 1.76 MM has Grown at 24.12%

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

Operating Cash Flow

Highest at CNY 290.21 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at 12.3 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Net Profit

Highest at CNY 40.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 458.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -29.91% (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 1.76 MM has Grown at 24.12%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)