Shenzhen Senior Technology Material Co., Ltd. (300568) 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 Senior Technology Material Co., Ltd.

Why is Shenzhen Senior Technology Material Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 41.33% and Operating profit at 21.15% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.24% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 6 consecutive quarters

ROCE(HY) Lowest at 1.31%
DEBT-EQUITY RATIO (HY) Highest at 100.67 %
DEBTORS TURNOVER RATIO(HY) Lowest at 1.5 times

With ROE of 2.30%, it has a fair valuation with a 1.83 Price to Book Value

Over the past year, while the stock has generated a return of 30.75%, its profits have fallen by -51.3%

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 Senior Technology Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Senior Technology Material Co., Ltd.

32.21%

1.09

52.35%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

41.33%

EBIT Growth (5y)

21.15%

EBIT to Interest (avg)

7.59

Debt to EBITDA (avg)

3.56

Net Debt to Equity (avg)

0.80

Sales to Capital Employed (avg)

0.18

Tax Ratio

5.10%

Dividend Payout Ratio

18.69%

Pledged Shares

Institutional Holding

ROCE (avg)

5.57%

ROE (avg)

6.24%

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

1.83

EV to EBIT

106.91

EV to EBITDA

26.75

EV to Capital Employed

1.43

EV to Sales

7.19

PEG Ratio

Dividend Yield

0.36%

ROCE (Latest)

1.34%

ROE (Latest)

2.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

1What is working for the Company

NET SALES(Q)

Highest at CNY 1,059.82 MM

-41What is not working for the Company

ROCE(HY)

Lowest at 1.31%

DEBT-EQUITY RATIO (HY)

Highest at 100.67 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.5 times

INTEREST(Q)

At CNY 44.92 MM has Grown at 20.71%

INTEREST COVERAGE RATIO(Q)

Lowest at 16.23

RAW MATERIAL COST(Y)

Grown by 31.98% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 7.29 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.69 %

PRE-TAX PROFIT(Q)

Lowest at CNY -9.86 MM

NET PROFIT(Q)

Lowest at CNY -11.16 MM

EPS(Q)

Lowest at CNY 0.01

Here's what is working for Shenzhen Senior Technology Material Co., Ltd.

Net Sales

Highest at CNY 1,059.82 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Shenzhen Senior Technology Material Co., Ltd.

Pre-Tax Profit

At CNY -9.86 MM has Fallen at -108.11%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -11.16 MM has Fallen at -110.39%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 44.92 MM has Grown at 20.71%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 16.23

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 100.67 % and Grown

In each half year 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

Debtors Turnover Ratio

Lowest at 1.5 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

Operating Profit

Lowest at CNY 7.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -9.86 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -11.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 31.98% (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