Shandong Sunpaper Co., Ltd. (002078) 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

Shandong Sunpaper Co., Ltd.

Why is Shandong Sunpaper Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 10.67% and Operating profit at 3.33% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 12.52% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.67% and Operating profit at 3.33% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At CNY 284.93 MM has Grown at 8.88%
INTEREST COVERAGE RATIO(Q) Lowest at 779.75
CASH AND EQV(HY) Lowest at CNY 3,904.54 MM

With ROE of 10.47%, it has a very attractive valuation with a 1.14 Price to Book Value

Over the past year, while the stock has generated a return of -4.21%, its profits have risen by 7.5% ; the PEG ratio of the company is 1.5
At the current price, the company has a high dividend yield of 3.1

Below par performance in long term as well as near term

Along with generating -4.21% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shandong Sunpaper Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Shandong Sunpaper Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shandong Sunpaper Co., Ltd.

-5.85%

-0.58

26.86%

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)

10.67%

EBIT Growth (5y)

3.33%

EBIT to Interest (avg)

6.09

Debt to EBITDA (avg)

2.61

Net Debt to Equity (avg)

0.55

Sales to Capital Employed (avg)

0.83

Tax Ratio

13.12%

Dividend Payout Ratio

25.79%

Pledged Shares

Institutional Holding

ROCE (avg)

9.93%

ROE (avg)

12.52%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.14

EV to EBIT

13.25

EV to EBITDA

9.11

EV to Capital Employed

1.09

EV to Sales

1.41

PEG Ratio

1.46

Dividend Yield

3.08%

ROCE (Latest)

8.20%

ROE (Latest)

10.47%

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

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.36% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 1,022.88 MM

NET PROFIT(Q)

Highest at CNY 908.82 MM

EPS(Q)

Highest at CNY 0.32

-9What is not working for the Company

INTEREST(HY)

At CNY 284.93 MM has Grown at 8.88%

INTEREST COVERAGE RATIO(Q)

Lowest at 779.75

CASH AND EQV(HY)

Lowest at CNY 3,904.54 MM

DEBT-EQUITY RATIO (HY)

Highest at 63.5 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.18 times

OPERATING PROFIT(Q)

Lowest at CNY 1,081.53 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.73 %

Here's what is working for Shandong Sunpaper Co., Ltd.

Pre-Tax Profit

Highest at CNY 1,022.88 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 908.82 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.32

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by 1.36% (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 Shandong Sunpaper Co., Ltd.

Interest Coverage Ratio

Lowest at 779.75

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 284.93 MM has Grown at 8.88%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 1,081.53 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.73 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 3,904.54 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 63.5 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 6.18 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio