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 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

324.66%

5.64

47.62%

China Shanghai Composite

23.91%

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)

9.01%

EBIT Growth (5y)

13.46%

EBIT to Interest (avg)

13.83

Debt to EBITDA (avg)

1.98

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

0.62

Tax Ratio

5.30%

Dividend Payout Ratio

35.71%

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

174

Industry P/E

Price to Book Value

19.28

EV to EBIT

143.98

EV to EBITDA

111.67

EV to Capital Employed

17.25

EV to Sales

22.57

PEG Ratio

0.99

Dividend Yield

0.12%

ROCE (Latest)

11.98%

ROE (Latest)

11.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bearish

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

22What is working for the Company

NET PROFIT(HY)

At CNY 76.46 MM has Grown at 519.1%

OPERATING CASH FLOW(Y)

Highest at CNY 231.65 MM

NET SALES(HY)

At CNY 571.04 MM has Grown at 32.09%

ROCE(HY)

Highest at 10.43%

RAW MATERIAL COST(Y)

Fallen by -49.31% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 12.51 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.63 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.76 times

-4What is not working for the Company

INTEREST(Q)

At CNY 1.42 MM has Grown at 197.51%

NET SALES(Q)

At CNY 263.74 MM has Fallen at -9.02%

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

Net Profit

At CNY 76.46 MM has Grown at 519.1%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 231.65 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 12.51 %

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 3.63 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.76 times

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 -49.31% (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 1.42 MM has Grown at 197.51%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 263.74 MM has Fallen at -9.02%

over average net sales of the previous four periods of CNY 289.88 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)