Shenzhen FRD Science & Technology Co., Ltd. (300602) 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 FRD Science & Technology Co., Ltd.

Why is Shenzhen FRD Science & Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.54%

The company has been able to generate a Return on Capital Employed (avg) of 2.54% 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 18.61% and Operating profit at 22.72% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.19% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 18.61% and Operating profit at 22.72% over the last 5 years

Flat results in Mar 26

INTEREST(Q) At CNY 10.88 MM has Grown at 17.49%
INTEREST COVERAGE RATIO(Q) Lowest at 1,113.85
DEBT-EQUITY RATIO (HY) Highest at 36.45 %

With ROE of 9.06%, it has a very expensive valuation with a 3.66 Price to Book Value

Over the past year, while the stock has generated a return of 164.58%, its profits have risen by 48.7% ; the PEG ratio of the company is 2
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 Electronics & Appliances)

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

Is Shenzhen FRD Science & Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen FRD Science & Technology Co., Ltd.

141.28%

3.88

62.73%

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)

18.61%

EBIT Growth (5y)

22.72%

EBIT to Interest (avg)

2.39

Debt to EBITDA (avg)

4.85

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.92

Tax Ratio

8.55%

Dividend Payout Ratio

9.58%

Pledged Shares

Institutional Holding

ROCE (avg)

2.54%

ROE (avg)

4.19%

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

3.66

EV to EBIT

41.00

EV to EBITDA

26.28

EV to Capital Employed

2.97

EV to Sales

2.38

PEG Ratio

2.03

Dividend Yield

0.23%

ROCE (Latest)

7.24%

ROE (Latest)

9.06%

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

Mildly Bullish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 470.78 MM

ROCE(HY)

Highest at 9.74%

RAW MATERIAL COST(Y)

Fallen by -27.32% (YoY

NET SALES(Q)

At CNY 1,643.71 MM has Grown at 39.15%

PRE-TAX PROFIT(Q)

At CNY 90.5 MM has Grown at 64.76%

-9What is not working for the Company

INTEREST(Q)

At CNY 10.88 MM has Grown at 17.49%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,113.85

DEBT-EQUITY RATIO (HY)

Highest at 36.45 %

Here's what is working for Shenzhen FRD Science & Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 470.78 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

At CNY 1,643.71 MM has Grown at 39.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 90.5 MM has Grown at 64.76%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -27.32% (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 FRD Science & Technology Co., Ltd.

Interest

At CNY 10.88 MM has Grown at 17.49%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,113.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 36.45 %

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