Shenzhen SED Industry Co., Ltd. (000032) 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 SED Industry Co., Ltd.

Why is Shenzhen SED Industry Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 39.40% and Operating profit at 4.97% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 16.52% signifying low profitability per unit of shareholders funds

With a fall in Net Profit of -406.76%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 5 consecutive quarters
NET SALES(9M) At CNY 38,549.54 MM has Grown at -17.43%
PRE-TAX PROFIT(Q) At CNY 69.43 MM has Fallen at -58.61%
NET PROFIT(Q) At CNY -82.41 MM has Fallen at -141.97%

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 33.13%, its profits have fallen by -92.2%
At the current price, the company has a high dividend yield of 0.1

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 Electronics & Appliances)

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

Is Shenzhen SED Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen SED Industry Co., Ltd.

22.81%

1.20

50.57%

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)

39.40%

EBIT Growth (5y)

4.97%

EBIT to Interest (avg)

4.10

Debt to EBITDA (avg)

2.72

Net Debt to Equity (avg)

1.05

Sales to Capital Employed (avg)

2.47

Tax Ratio

36.60%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

22.09%

ROE (avg)

16.52%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

350

Industry P/E

Price to Book Value

2.62

EV to EBIT

45.20

EV to EBITDA

21.45

EV to Capital Employed

2.00

EV to Sales

0.48

PEG Ratio

Dividend Yield

0.08%

ROCE (Latest)

4.41%

ROE (Latest)

0.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,503.37 MM

CASH AND EQV(HY)

Highest at CNY 26,308.53 MM

DEBT-EQUITY RATIO (HY)

Lowest at 67.25 %

-23What is not working for the Company

NET SALES(9M)

At CNY 38,549.54 MM has Grown at -17.43%

PRE-TAX PROFIT(Q)

At CNY 69.43 MM has Fallen at -58.61%

NET PROFIT(Q)

At CNY -82.41 MM has Fallen at -141.97%

ROCE(HY)

Lowest at -2.53%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.13 times

RAW MATERIAL COST(Y)

Grown by 20.23% (YoY

Here's what is working for Shenzhen SED Industry Co., Ltd.

Operating Cash Flow

Highest at CNY 2,503.37 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)

Cash and Eqv

Highest at CNY 26,308.53 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 67.25 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Shenzhen SED Industry Co., Ltd.

Net Sales

At CNY 38,549.54 MM has Grown at -17.43%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 69.43 MM has Fallen at -58.61%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -82.41 MM has Fallen at -141.97%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 1.13 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 20.23% (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

Non Operating Income

Highest at CNY 1.02 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income