Shandong Swan Cotton Industrial Machinery Stock Co., Ltd. (603029) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shandong Swan Cotton Industrial Machinery Stock Co., Ltd.

Why is Shandong Swan Cotton Industrial Machinery Stock Co., Ltd. ?

Flat results in Mar 25

INTEREST(HY) At CNY 1.17 MM has Grown at 332.5%
OPERATING CASH FLOW(Y) Lowest at CNY -151.43 MM
INTEREST COVERAGE RATIO(Q) Lowest at 531.37

With ROE of 8.10%, it has a very attractive valuation with a 2.39 Price to Book Value

Over the past year, while the stock has generated a return of -1.91%, its profits have risen by 7% ; the PEG ratio of the company is 4.2
At the current price, the company has a high dividend yield of 1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.91% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shandong Swan Cotton Industrial Machinery Stock Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Shandong Swan Cotton Industrial Machinery Stock Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shandong Swan Cotton Industrial Machinery Stock Co., Ltd.

-1.91%

0.82

37.03%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.24%

EBIT Growth (5y)

42.97%

EBIT to Interest (avg)

8.43

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

0.77

Tax Ratio

4.51%

Dividend Payout Ratio

30.11%

Pledged Shares

Institutional Holding

ROCE (avg)

4.29%

ROE (avg)

5.72%

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

2.39

EV to EBIT

35.15

EV to EBITDA

20.29

EV to Capital Employed

2.40

EV to Sales

2.59

PEG Ratio

4.20

Dividend Yield

0.98%

ROCE (Latest)

6.83%

ROE (Latest)

8.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

2What is working for the Company

NET SALES(HY)

At CNY 462.08 MM has Grown at 20.86%

-12What is not working for the Company

INTEREST(HY)

At CNY 1.17 MM has Grown at 332.5%

OPERATING CASH FLOW(Y)

Lowest at CNY -151.43 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 531.37

RAW MATERIAL COST(Y)

Grown by 8.35% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -5.02 %

OPERATING PROFIT(Q)

Lowest at CNY 4.72 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.9 %

Here's what is working for Shandong Swan Cotton Industrial Machinery Stock Co., Ltd.

Net Sales

At CNY 462.08 MM has Grown at 20.86%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Shandong Swan Cotton Industrial Machinery Stock Co., Ltd.

Interest

At CNY 1.17 MM has Grown at 332.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 531.37

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY -151.43 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 4.72 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.9 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -5.02 %

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

Raw Material Cost

Grown by 8.35% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at CNY 0.58 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income