Shantou Wanshun New Material Group Co., Ltd. (300057) 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

Shantou Wanshun New Material Group Co., Ltd.

Why is Shantou Wanshun New Material Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.20%

The company has been able to generate a Return on Capital Employed (avg) of 1.20% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 2.25% and Operating profit at -181.48% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 1.11% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.25% and Operating profit at -181.48% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 80.35%, its profits have risen by 25.7%
At the current price, the company has a high dividend yield of 0.2

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 Packaging)

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

Is Shantou Wanshun New Material Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shantou Wanshun New Material Group Co., Ltd.

67.35%

2.17

51.63%

China Shanghai Composite

21.43%

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)

2.25%

EBIT Growth (5y)

-181.48%

EBIT to Interest (avg)

0.83

Debt to EBITDA (avg)

14.37

Net Debt to Equity (avg)

0.49

Sales to Capital Employed (avg)

0.61

Tax Ratio

20.17%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.20%

ROE (avg)

1.11%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.79

EV to EBIT

-117.24

EV to EBITDA

57.95

EV to Capital Employed

0.87

EV to Sales

1.19

PEG Ratio

Dividend Yield

0.23%

ROCE (Latest)

-0.74%

ROE (Latest)

-2.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

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

16What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -63.82% (YoY

NET SALES(Q)

At CNY 1,698.42 MM has Grown at 17.18%

PRE-TAX PROFIT(Q)

Highest at CNY 35.65 MM

NET PROFIT(Q)

Highest at CNY 21.94 MM

EPS(Q)

Highest at CNY 0.02

-5What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 62.14 %

INTEREST(Q)

At CNY 29.93 MM has Grown at 12.03%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.52 times

Here's what is working for Shantou Wanshun New Material Group Co., Ltd.

Pre-Tax Profit

At CNY 35.65 MM has Grown at 198.3%

over average net sales of the previous four periods of CNY -36.26 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 21.94 MM has Grown at 154.43%

over average net sales of the previous four periods of CNY -40.31 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 1,698.42 MM has Grown at 17.18%

over average net sales of the previous four periods of CNY 1,449.35 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 35.65 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 21.94 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -63.82% (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 Shantou Wanshun New Material Group Co., Ltd.

Interest

At CNY 29.93 MM has Grown at 12.03%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 62.14 % and Grown

In each half year 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

Debtors Turnover Ratio

Lowest at 2.52 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at CNY 0.21 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income