Shenzhen Sea Star Technology Co., Ltd. (002137) 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 Sea Star Technology Co., Ltd.

Why is Shenzhen Sea Star Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.11%

The company has been able to generate a Return on Capital Employed (avg) of 1.11% 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 -1.65% and Operating profit at 45.54% over the last 5 years

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 89.01 MM
NET SALES(HY) At CNY 371.36 MM has Grown at 31.09%
NET PROFIT(HY) At CNY 14.69 MM has Grown at 57.2%

With ROE of 3.01%, it has a fair valuation with a 2.33 Price to Book Value

Over the past year, while the stock has generated a return of 31.61%, its profits have risen by 18.1% ; the PEG ratio of the company is 4.3

Market Beating performance in long term as well as near term

Along with generating 31.61% 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 Sea Star Technology 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 Shenzhen Sea Star Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Sea Star Technology Co., Ltd.

22.21%

3.27

40.48%

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)

-1.65%

EBIT Growth (5y)

45.54%

EBIT to Interest (avg)

11.09

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.38

Tax Ratio

78.85%

Dividend Payout Ratio

67.02%

Pledged Shares

Institutional Holding

ROCE (avg)

1.11%

ROE (avg)

3.98%

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

2.33

EV to EBIT

94.93

EV to EBITDA

58.56

EV to Capital Employed

2.55

EV to Sales

4.70

PEG Ratio

4.28

Dividend Yield

0.81%

ROCE (Latest)

2.68%

ROE (Latest)

3.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 89.01 MM

NET SALES(HY)

At CNY 371.36 MM has Grown at 31.09%

NET PROFIT(HY)

At CNY 14.69 MM has Grown at 57.2%

ROCE(HY)

Highest at 2.85%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.09 times

-4What is not working for the Company

INTEREST(HY)

At CNY 0.13 MM has Grown at 6.01%

RAW MATERIAL COST(Y)

Grown by 18.24% (YoY

PRE-TAX PROFIT(Q)

At CNY 11.14 MM has Fallen at -31.36%

Here's what is working for Shenzhen Sea Star Technology Co., Ltd.

Net Sales

At CNY 371.36 MM has Grown at 31.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 14.69 MM has Grown at 57.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 89.01 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 4.09 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Shenzhen Sea Star Technology Co., Ltd.

Interest

At CNY 0.13 MM has Grown at 6.01%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 11.14 MM has Fallen at -31.36%

over average net sales of the previous four periods of CNY 16.23 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 18.24% (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