Shenzhen Original Advanced Compounds Co., Ltd. (603991) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shenzhen Original Advanced Compounds Co., Ltd.

Why is Shenzhen Original Advanced Compounds Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -2.63% and Operating profit at 11.06% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
NET SALES(Q) At CNY 50.49 MM has Fallen at -44.23%
NET PROFIT(Q) At CNY -14.23 MM has Fallen at -89.43%
RAW MATERIAL COST(Y) Grown by 71.46% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 26.89%, its profits have fallen by -52.1%

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 Other Industrial Products)

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

Is Shenzhen Original Advanced Compounds Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Original Advanced Compounds Co., Ltd.

26.89%

3.16

52.41%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.63%

EBIT Growth (5y)

11.06%

EBIT to Interest (avg)

-7.34

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.86

Sales to Capital Employed (avg)

0.65

Tax Ratio

34.46%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

22.18

EV to EBIT

-190.34

EV to EBITDA

-439.58

EV to Capital Employed

14.59

EV to Sales

12.68

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.67%

ROE (Latest)

-19.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly 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

14What is working for the Company

NET SALES(HY)

At CNY 220.94 MM has Grown at 80.77%

OPERATING CASH FLOW(Y)

Highest at CNY 11.48 MM

NET PROFIT(HY)

Higher at CNY -29.21 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.21%

-14What is not working for the Company

NET SALES(Q)

At CNY 50.49 MM has Fallen at -44.23%

NET PROFIT(Q)

At CNY -14.23 MM has Fallen at -89.43%

RAW MATERIAL COST(Y)

Grown by 71.46% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 85.73 %

OPERATING PROFIT(Q)

Lowest at CNY -14.42 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -28.56 %

PRE-TAX PROFIT(Q)

Lowest at CNY -16.43 MM

Here's what is working for Shenzhen Original Advanced Compounds Co., Ltd.

Operating Cash Flow

Highest at CNY 11.48 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Highest at 2.21%

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 Shenzhen Original Advanced Compounds Co., Ltd.

Net Sales

At CNY 50.49 MM has Fallen at -44.23%

over average net sales of the previous four periods of CNY 90.53 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -16.43 MM has Fallen at -466.49%

over average net sales of the previous four periods of CNY -2.9 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -14.23 MM has Fallen at -89.43%

over average net sales of the previous four periods of CNY -7.51 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -14.42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -28.56 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -16.43 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 85.73 %

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 71.46% (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