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. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 27.99% and Operating profit at -3.97% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 6.24% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 10 consecutive quarters

INTEREST(HY) At CNY 113.74 MM has Grown at 101.59%
NET PROFIT(Q) At CNY 30.62 MM has Fallen at -52.58%
ROCE(HY) Lowest at 0.19%

With ROE of -0.27%, it has a very expensive valuation with a 2.12 Price to Book Value

Over the past year, while the stock has generated a return of 93.62%, its profits have fallen by -107.7%

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.

78.01%

2.23

55.14%

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)

27.99%

EBIT Growth (5y)

-3.97%

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

36.76%

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

NA (Loss Making)

Industry P/E

Price to Book Value

2.12

EV to EBIT

222.73

EV to EBITDA

38.63

EV to Capital Employed

1.54

EV to Sales

7.28

PEG Ratio

Dividend Yield

0.38%

ROCE (Latest)

0.69%

ROE (Latest)

-0.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -12.24% (YoY

NET SALES(Q)

At CNY 1,080.81 MM has Grown at 21.53%

-35What is not working for the Company

INTEREST(HY)

At CNY 113.74 MM has Grown at 101.59%

NET PROFIT(Q)

At CNY 30.62 MM has Fallen at -52.58%

ROCE(HY)

Lowest at 0.19%

DEBT-EQUITY RATIO (HY)

Highest at 112.32 %

INTEREST COVERAGE RATIO(Q)

Lowest at 156.48

OPERATING PROFIT(Q)

Lowest at CNY 89.99 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.33 %

PRE-TAX PROFIT(Q)

At CNY 37.45 MM has Fallen at -44.64%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.4 times

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

Net Sales

At CNY 1,080.81 MM has Grown at 21.53%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -12.24% (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 Senior Technology Material Co., Ltd.

Interest

At CNY 113.74 MM has Grown at 101.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 30.62 MM has Fallen at -52.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 156.48

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 89.99 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.33 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 37.45 MM has Fallen at -44.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 112.32 % 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

Inventory Turnover Ratio

Lowest at 4.4 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio