Shenzhen Soling Industrial Co., Ltd. (002766) 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 Soling Industrial Co., Ltd.

Why is Shenzhen Soling Industrial Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.43%

The company has been able to generate a Return on Capital Employed (avg) of 4.43% 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 -10.38% and Operating profit at 13.90% over the last 5 years

With a fall in Net Sales of -55.21%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 6 consecutive quarters
The company has declared negative results in Dec 24 after 5 consecutive negative quarters
INTEREST(HY) At CNY 0.66 MM has Grown at 32.71%
OPERATING CASH FLOW(Y) Lowest at CNY -104.99 MM
PRE-TAX PROFIT(Q) At CNY -18.44 MM has Fallen at -2,231.73%

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 -24.51%, its profits have fallen by -255.7%

Below par performance in long term as well as near term

Along with generating -24.51% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Auto Components & Equipments)

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

Is Shenzhen Soling Industrial Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Soling Industrial Co., Ltd.

-24.66%

-0.03

46.05%

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)

-10.38%

EBIT Growth (5y)

13.90%

EBIT to Interest (avg)

12.89

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.51

Sales to Capital Employed (avg)

1.38

Tax Ratio

7.11%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.43%

ROE (avg)

2.75%

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

0.98

EV to EBIT

-5.35

EV to EBITDA

-10.12

EV to Capital Employed

0.96

EV to Sales

0.75

PEG Ratio

Dividend Yield

ROCE (Latest)

-17.99%

ROE (Latest)

-7.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -18.89% (YoY

CASH AND EQV(HY)

Highest at CNY 1,277.02 MM

-43What is not working for the Company

INTEREST(HY)

At CNY 0.66 MM has Grown at 32.71%

OPERATING CASH FLOW(Y)

Lowest at CNY -104.99 MM

PRE-TAX PROFIT(Q)

At CNY -18.44 MM has Fallen at -2,231.73%

NET PROFIT(Q)

At CNY -17.89 MM has Fallen at -1,773.92%

ROCE(HY)

Lowest at -7.9%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.46 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.62 times

NET SALES(Q)

Lowest at CNY 95.54 MM

Here's what is working for Shenzhen Soling Industrial Co., Ltd.

Cash and Eqv

Highest at CNY 1,277.02 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -18.89% (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 Soling Industrial Co., Ltd.

Interest

At CNY 0.66 MM has Grown at 32.71%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 95.54 MM has Fallen at -55.21%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -18.44 MM has Fallen at -2,231.73%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -17.89 MM has Fallen at -1,773.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -104.99 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 95.54 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 4.46 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio