Shengtak New Material Co., Ltd. (300881) 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

Shengtak New Material Co., Ltd.

Why is Shengtak New Material 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 28.07% and Operating profit at 23.50% 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 12.15% signifying low profitability per unit of shareholders funds

With ROE of 19.16%, it has a very expensive valuation with a 3.58 Price to Book Value

Over the past year, while the stock has generated a return of 15.22%, its profits have fallen by -0.1%
At the current price, the company has a high dividend yield of 3

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 Ferrous Metals)

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

Is Shengtak New Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shengtak New Material Co., Ltd.

21.84%

1.27

50.26%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.07%

EBIT Growth (5y)

23.50%

EBIT to Interest (avg)

9.73

Debt to EBITDA (avg)

3.42

Net Debt to Equity (avg)

1.02

Sales to Capital Employed (avg)

1.00

Tax Ratio

10.32%

Dividend Payout Ratio

48.53%

Pledged Shares

Institutional Holding

ROCE (avg)

8.28%

ROE (avg)

12.15%

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

3.58

EV to EBIT

21.24

EV to EBITDA

16.72

EV to Capital Employed

2.07

EV to Sales

1.82

PEG Ratio

Dividend Yield

2.99%

ROCE (Latest)

9.73%

ROE (Latest)

19.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 44.04 MM

NET SALES(Q)

Highest at CNY 834.68 MM

PRE-TAX PROFIT(Q)

Highest at CNY 81.12 MM

-6What is not working for the Company

NET PROFIT(HY)

At CNY 102.24 MM has Grown at -28.55%

RAW MATERIAL COST(Y)

Grown by 36.05% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 126.66 %

Here's what is working for Shengtak New Material Co., Ltd.

Operating Cash Flow

Highest at CNY 44.04 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 834.68 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 834.68 MM has Grown at 17.7%

over average net sales of the previous four periods of CNY 709.14 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 81.12 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Here's what is not working for Shengtak New Material Co., Ltd.

Net Profit

At CNY 102.24 MM has Grown at -28.55%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 126.66 %

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 36.05% (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