Shenzhen Etmade Automatic Equipment Co., Ltd. (300812) 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

Shenzhen Etmade Automatic Equipment Co., Ltd.

Why is Shenzhen Etmade Automatic Equipment Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.65%

The company has been able to generate a Return on Capital Employed (avg) of 2.65% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 9.00% and Operating profit at -175.80% over the last 5 years

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

NET SALES(HY) At CNY 376.8 MM has Grown at 96.47%
NET PROFIT(HY) Higher at CNY -8.47 MM
RAW MATERIAL COST(Y) Fallen by -4.95% (YoY)

With ROE of 0.21%, it has a very expensive valuation with a 2.91 Price to Book Value

Over the past year, while the stock has generated a return of 81.85%, its profits have risen by 102.2% ; the PEG ratio of the company is 13.8

Market Beating performance in long term as well as near term

Along with generating 81.85% 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 Shenzhen Etmade Automatic Equipment Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Shenzhen Etmade Automatic Equipment Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Etmade Automatic Equipment Co., Ltd.

81.43%

0.48

72.85%

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)

9.00%

EBIT Growth (5y)

-175.80%

EBIT to Interest (avg)

2.41

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.51

Tax Ratio

11.97%

Dividend Payout Ratio

26.77%

Pledged Shares

Institutional Holding

ROCE (avg)

2.65%

ROE (avg)

3.79%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

1406

Industry P/E

Price to Book Value

2.91

EV to EBIT

-184.33

EV to EBITDA

-1923.55

EV to Capital Employed

3.15

EV to Sales

3.53

PEG Ratio

13.76

Dividend Yield

0.22%

ROCE (Latest)

-1.71%

ROE (Latest)

0.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly 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

19What is working for the Company

NET SALES(HY)

At CNY 376.8 MM has Grown at 96.47%

NET PROFIT(HY)

Higher at CNY -8.47 MM

RAW MATERIAL COST(Y)

Fallen by -4.95% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -10.58 %

INVENTORY TURNOVER RATIO(HY)

Highest at 0.8 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.03 times

-6What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 7.03 MM has Fallen at -69.17%

NET PROFIT(Q)

At CNY 8.66 MM has Fallen at -56.87%

Here's what is working for Shenzhen Etmade Automatic Equipment Co., Ltd.

Net Sales

At CNY 376.8 MM has Grown at 96.47%

Year on Year (YoY)

MOJO Watch

Sales trend is very positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at -10.58 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 0.8 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.03 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 -4.95% (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 Shenzhen Etmade Automatic Equipment Co., Ltd.

Pre-Tax Profit

At CNY 7.03 MM has Fallen at -69.17%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 8.66 MM has Fallen at -56.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)