SEC Electric Machinery Co., Ltd. (603988) 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

SEC Electric Machinery Co., Ltd.

Why is SEC Electric Machinery Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -3.35% and Operating profit at -30.40% over the last 5 years

Flat results in Sep 25

PRE-TAX PROFIT(Q) At CNY 6.73 MM has Fallen at -72.2%
NET PROFIT(Q) At CNY 4.24 MM has Fallen at -78.02%
OPERATING CASH FLOW(Y) Lowest at CNY -24.57 MM

With ROE of 7.87%, it has a very expensive valuation with a 10.15 Price to Book Value

Over the past year, while the stock has generated a return of 37.02%, its profits have risen by 322.9% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0.1

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 Electronics & Appliances)

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

Is SEC Electric Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

SEC Electric Machinery Co., Ltd.

-30.25%

4.49

52.17%

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)

-5.61%

EBIT Growth (5y)

-32.52%

EBIT to Interest (avg)

49.94

Debt to EBITDA (avg)

1.16

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.84

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

34.54%

Pledged Shares

Institutional Holding

ROCE (avg)

8.97%

ROE (avg)

8.34%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

139

Industry P/E

Price to Book Value

6.82

EV to EBIT

269.09

EV to EBITDA

150.78

EV to Capital Employed

8.05

EV to Sales

6.78

PEG Ratio

9.94

Dividend Yield

0.23%

ROCE (Latest)

2.99%

ROE (Latest)

4.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly 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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 142.35 MM

DEBT-EQUITY RATIO (HY)

Lowest at -17.33 %

RAW MATERIAL COST(Y)

Fallen by -36.73% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.87 times

PRE-TAX PROFIT(Q)

At CNY 5.57 MM has Grown at 90.41%

-17What is not working for the Company

INTEREST(9M)

At CNY 0.43 MM has Grown at inf%

NET PROFIT(HY)

At CNY 4.83 MM has Grown at -50.02%

NET SALES(HY)

At CNY 295.71 MM has Grown at -15.94%

Here's what is working for SEC Electric Machinery Co., Ltd.

Operating Cash Flow

Highest at CNY 142.35 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 -17.33 % 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

Pre-Tax Profit

At CNY 5.57 MM has Grown at 90.41%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 1.87 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 -36.73% (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 SEC Electric Machinery Co., Ltd.

Net Profit

At CNY 4.83 MM has Grown at -50.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 0.43 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 295.71 MM has Grown at -15.94%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)