Shannon Semiconductor Technology Co. Ltd. (300475) 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

Shannon Semiconductor Technology Co. Ltd.

Why is Shannon Semiconductor Technology Co. Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 161.97% and Operating profit at 86.05% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 10.55% signifying low profitability per unit of shareholders funds
NET SALES(HY) At CNY 15,664 MM has Grown at 163.97%
OPERATING CASH FLOW(Y) Highest at CNY 482.05 MM
CASH AND EQV(HY) Highest at CNY 2,081.14 MM

With ROE of 7.70%, it has a very expensive valuation with a 11.94 Price to Book Value

Over the past year, while the stock has generated a return of 489.82%, its profits have fallen by -47%
At the current price, the company has a high dividend yield of 0.1

Market Beating performance in long term as well as near term

Along with generating 489.82% returns in the last 1 year, the stock has outperformed 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 Shannon Semiconductor Technology Co. Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Shannon Semiconductor Technology Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shannon Semiconductor Technology Co. Ltd.

-100.0%

6.50

75.36%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

161.97%

EBIT Growth (5y)

86.05%

EBIT to Interest (avg)

5.08

Debt to EBITDA (avg)

2.98

Net Debt to Equity (avg)

0.78

Sales to Capital Employed (avg)

3.19

Tax Ratio

22.34%

Dividend Payout Ratio

10.05%

Pledged Shares

Institutional Holding

ROCE (avg)

9.43%

ROE (avg)

10.55%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

155

Industry P/E

Price to Book Value

11.94

EV to EBIT

73.05

EV to EBITDA

70.13

EV to Capital Employed

6.45

EV to Sales

1.23

PEG Ratio

Dividend Yield

0.07%

ROCE (Latest)

8.83%

ROE (Latest)

7.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

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

NET SALES(HY)

At CNY 15,664 MM has Grown at 163.97%

OPERATING CASH FLOW(Y)

Highest at CNY 482.05 MM

CASH AND EQV(HY)

Highest at CNY 2,081.14 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 21.32%

-24What is not working for the Company

INTEREST(HY)

At CNY 132.52 MM has Grown at 77.88%

NET PROFIT(Q)

At CNY 16.51 MM has Fallen at -79.97%

ROCE(HY)

Lowest at 9.5%

PRE-TAX PROFIT(Q)

At CNY 42.45 MM has Fallen at -54.53%

RAW MATERIAL COST(Y)

Grown by 77.01% (YoY

Here's what is working for Shannon Semiconductor Technology Co. Ltd.

Operating Cash Flow

Highest at CNY 482.05 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)

Net Sales

At CNY 7,904.59 MM has Grown at 30.3%

over average net sales of the previous four periods of CNY 6,066.57 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 2,081.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 21.32%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Shannon Semiconductor Technology Co. Ltd.

Interest

At CNY 132.52 MM has Grown at 77.88%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 16.51 MM has Fallen at -79.97%

over average net sales of the previous four periods of CNY 82.46 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 42.45 MM has Fallen at -54.53%

over average net sales of the previous four periods of CNY 93.36 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 77.01% (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