Shenzhen Success Electronics Co. Ltd. (002289) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shenzhen Success Electronics Co. Ltd.

Why is Shenzhen Success Electronics Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of 9.42% and Operating profit at 10.16% over the last 5 years

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 858.33%, its profits have fallen by -40.9%

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 Success Electronics Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Success Electronics Co. Ltd.

-100.0%

19.04

54.23%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.42%

EBIT Growth (5y)

10.16%

EBIT to Interest (avg)

-15.95

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.67

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

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

44.14

EV to EBIT

-724.65

EV to EBITDA

-9100.50

EV to Capital Employed

39.15

EV to Sales

38.72

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.40%

ROE (Latest)

-5.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

25What is working for the Company

NET SALES(HY)

At CNY 128.77 MM has Grown at 147.06%

RAW MATERIAL COST(Y)

Fallen by -2,262.99% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.68%

OPERATING PROFIT MARGIN(Q)

Highest at 8.61 %

PRE-TAX PROFIT(Q)

Highest at CNY 4.53 MM

NET PROFIT(Q)

Highest at CNY 1.14 MM

EPS(Q)

Highest at CNY 0

-15What is not working for the Company

INTEREST(HY)

At CNY 1.31 MM has Grown at 64.59%

NET SALES(Q)

At CNY 45.04 MM has Fallen at -17.08%

DEBT-EQUITY RATIO (HY)

Highest at 10.96 %

CASH AND EQV(HY)

Lowest at CNY 40.61 MM

Here's what is working for Shenzhen Success Electronics Co. Ltd.

Pre-Tax Profit

At CNY 4.53 MM has Grown at 199.96%

over average net sales of the previous four periods of CNY -4.53 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1.14 MM has Grown at 122.37%

over average net sales of the previous four periods of CNY -5.12 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Profit Margin

Highest at 8.61 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 4.53 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 1.14 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 6.68%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -2,262.99% (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 Success Electronics Co. Ltd.

Interest

At CNY 1.31 MM has Grown at 64.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 45.04 MM has Fallen at -17.08%

over average net sales of the previous four periods of CNY 54.32 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 10.96 % 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

Cash and Eqv

Lowest at CNY 40.61 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents