Shennan Circuits Co., Ltd. (002916) 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

Shennan Circuits Co., Ltd.

Why is Shennan Circuits Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 16.57% and Operating profit at 19.25% over the last 5 years

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 3,474.2 MM
NET SALES(HY) At CNY 13,488.55 MM has Grown at 39.91%
NET PROFIT(HY) At CNY 1,801.31 MM has Grown at 104.62%

With ROE of 20.12%, it has a expensive valuation with a 13.59 Price to Book Value

Over the past year, while the stock has generated a return of 360.89%, its profits have risen by 82.8% ; the PEG ratio of the company is 1.7
At the current price, the company has a high dividend yield of 0.5

Market Beating performance in long term as well as near term

Along with generating 360.89% 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 Shennan Circuits 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 Shennan Circuits Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shennan Circuits Co., Ltd.

334.69%

8.05

66.26%

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)

16.57%

EBIT Growth (5y)

19.25%

EBIT to Interest (avg)

17.44

Debt to EBITDA (avg)

0.95

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.94

Tax Ratio

6.94%

Dividend Payout Ratio

48.85%

Pledged Shares

Institutional Holding

ROCE (avg)

10.72%

ROE (avg)

13.73%

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

13.59

EV to EBIT

68.09

EV to EBITDA

50.64

EV to Capital Employed

11.42

EV to Sales

9.80

PEG Ratio

1.69

Dividend Yield

0.50%

ROCE (Latest)

16.77%

ROE (Latest)

20.11%

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

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

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,474.2 MM

NET SALES(HY)

At CNY 13,488.55 MM has Grown at 39.91%

NET PROFIT(HY)

At CNY 1,801.31 MM has Grown at 104.62%

ROCE(HY)

Highest at 21.9%

RAW MATERIAL COST(Y)

Fallen by -23.39% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 21.21 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.03 times

-6What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 4,239.61

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.57 times

INTEREST(Q)

Highest at CNY 21.82 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.03 %

Here's what is working for Shennan Circuits Co., Ltd.

Net Sales

At CNY 13,488.55 MM has Grown at 39.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 1,801.31 MM has Grown at 104.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 3,474.2 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)

Debt-Equity Ratio

Lowest at 21.21 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -23.39% (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 Shennan Circuits Co., Ltd.

Interest Coverage Ratio

Lowest at 4,239.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 21.82 MM

in the last five periods and Increased by 5.65% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 14.03 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.57 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio