Shenzhen Sine Electric Co. Ltd. () 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 Sine Electric Co. Ltd.

Why is Shenzhen Sine Electric Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 9.82%

The company has been able to generate a Return on Capital Employed (avg) of 9.82% 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 5.81% and Operating profit at -4.80% over the last 5 years

Negative results in Sep 25

INTEREST(HY) At CNY 0.05 MM has Grown at 598.87%
ROCE(HY) Lowest at 4.8%
INTEREST COVERAGE RATIO(Q) Lowest at 11,048.53

With ROE of 4.48%, it has a fair valuation with a 2.78 Price to Book Value

Over the past year, while the stock has generated a return of 32.34%, its profits have fallen by -8.2%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Sine Electric 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 Sine Electric Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Sine Electric Co. Ltd.

13.62%

1.69

50.30%

China Shanghai Composite

16.01%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.81%

EBIT Growth (5y)

-4.80%

EBIT to Interest (avg)

32.74

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

0.49

Tax Ratio

5.59%

Dividend Payout Ratio

34.33%

Pledged Shares

Institutional Holding

ROCE (avg)

9.82%

ROE (avg)

6.52%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.78

EV to EBIT

60.36

EV to EBITDA

43.15

EV to Capital Employed

4.17

EV to Sales

4.56

PEG Ratio

Dividend Yield

ROCE (Latest)

6.91%

ROE (Latest)

4.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

3What is working for the Company

NET SALES(9M)

At CNY 328.81 MM has Grown at 18.03%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.96 times

-16What is not working for the Company

INTEREST(HY)

At CNY 0.05 MM has Grown at 598.87%

ROCE(HY)

Lowest at 4.8%

INTEREST COVERAGE RATIO(Q)

Lowest at 11,048.53

RAW MATERIAL COST(Y)

Grown by 7.42% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 5.23 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.8 %

Here's what is working for Shenzhen Sine Electric Co. Ltd.

Net Sales

At CNY 328.81 MM has Grown at 18.03%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 4.96 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 Sine Electric Co. Ltd.

Interest

At CNY 0.05 MM has Grown at 598.87%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 11,048.53

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 5.23 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.8 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 7.42% (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