Shenglan Technology Co., Ltd. (300843) 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

Shenglan Technology Co., Ltd.

Why is Shenglan Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 11.56% and Operating profit at -3.97% over the last 5 years

Negative results in Mar 26

INTEREST(HY) At CNY 0.85 MM has Grown at 123.44%
OPERATING CASH FLOW(Y) Lowest at CNY 94.01 MM
NET PROFIT(9M) At CNY 63.95 MM has Grown at -19.88%

With ROE of 7.28%, it has a very expensive valuation with a 8.33 Price to Book Value

Over the past year, while the stock has generated a return of 363.13%, its profits have risen by 7.5% ; the PEG ratio of the company is 15.3
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 Shenglan Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenglan Technology Co., Ltd.

347.84%

5.11

74.28%

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)

11.56%

EBIT Growth (5y)

-3.97%

EBIT to Interest (avg)

44.16

Debt to EBITDA (avg)

0.32

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

0.72

Tax Ratio

5.71%

Dividend Payout Ratio

29.26%

Pledged Shares

Institutional Holding

ROCE (avg)

8.91%

ROE (avg)

8.39%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

114

Industry P/E

Price to Book Value

8.33

EV to EBIT

124.85

EV to EBITDA

78.70

EV to Capital Employed

7.74

EV to Sales

7.27

PEG Ratio

15.29

Dividend Yield

0.09%

ROCE (Latest)

6.20%

ROE (Latest)

7.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

9What is working for the Company

NET SALES(HY)

At CNY 986.53 MM has Grown at 42%

CASH AND EQV(HY)

Highest at CNY 1,471.82 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.52 times

-13What is not working for the Company

INTEREST(HY)

At CNY 0.85 MM has Grown at 123.44%

OPERATING CASH FLOW(Y)

Lowest at CNY 94.01 MM

NET PROFIT(9M)

At CNY 63.95 MM has Grown at -19.88%

INTEREST COVERAGE RATIO(Q)

Lowest at 4,668.36

RAW MATERIAL COST(Y)

Grown by 6.07% (YoY

Here's what is working for Shenglan Technology Co., Ltd.

Net Sales

At CNY 986.53 MM has Grown at 42%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 1,471.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.52 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Shenglan Technology Co., Ltd.

Interest

At CNY 0.85 MM has Grown at 123.44%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 94.01 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Lowest at 4,668.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 63.95 MM has Grown at -19.88%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 6.07% (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