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Shenzhen Soling Industrial Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Auto Components & Equipments
  • ISIN: CNE1000021V2
  • SHE: 002766
CNY
4.11
0.05 (1.23%)

Sep 22

SHE

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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. ?

1
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)
2
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
3
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%
4
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 -28.84%, its profits have fallen by -255.7%
5
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -28.84% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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.
-26.21%
-0.07
46.36%
China Shanghai Composite
3.23%
1.20
14.07%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
2.92
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.51
Sales to Capital Employed (avg)
1.38
Tax Ratio
7.74%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.43%
ROE (avg)
2.75%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
2.89
EV to EBIT
-28.80
EV to EBITDA
-54.44
EV to Capital Employed
5.18
EV to Sales
4.04
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-17.99%
ROE (Latest)
-7.28%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company
NET PROFIT(HY)

Higher at CNY -41.64 MM

CASH AND EQV(HY)

Highest at CNY 1,136.42 MM

-35What is not working for the Company
NET SALES(Q)

At CNY 106.86 MM has Fallen at -53.67%

PRE-TAX PROFIT(Q)

At CNY -30.1 MM has Fallen at -1,253.12%

NET PROFIT(Q)

At CNY -23.75 MM has Fallen at -603.75%

INTEREST(9M)

At CNY 0.99 MM has Grown at 10.61%

ROCE(HY)

Lowest at -9.36%

RAW MATERIAL COST(Y)

Grown by 39.21% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.2 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.4 times

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

Cash and Eqv
Highest at CNY 1,136.42 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Shenzhen Soling Industrial Co., Ltd.

Net Sales
At CNY 106.86 MM has Fallen at -53.67%
Year on Year (YoY)
MOJO Watch
Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit
At CNY -30.1 MM has Fallen at -1,253.12%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit
At CNY -23.75 MM has Fallen at -603.75%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest
At CNY 0.99 MM has Grown at 10.61%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio
Lowest at 3.2 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 3.4 times
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 39.21% (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

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