Why is Shenzhen Success Electronics Co. Ltd. ?
1
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
2
Poor long term growth as Net Sales has grown by an annual rate of 28.32% and Operating profit at 39.18% over the last 5 years
3
With a growth in Operating Profit of 268.84%, the company declared Very Positive results in Mar 26
- The company has declared positive results for the last 2 consecutive quarters
- ROCE(HY) Highest at 13.49%
- RAW MATERIAL COST(Y) Fallen by -54.73% (YoY)
- CASH AND EQV(HY) Highest at CNY 684.78 MM
4
With ROE of 13.21%, it has a very expensive valuation with a 37.70 Price to Book Value
- Over the past year, while the stock has generated a return of 190.50%, its profits have risen by 756.6% ; the PEG ratio of the company is 0.4
5
Market Beating performance in long term as well as near term
- Along with generating 190.50% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
How much should you buy?
- Overall Portfolio exposure to Shenzhen Success Electronics 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 Success Electronics Co. Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Shenzhen Success Electronics Co. Ltd.
-5.3%
23.96
55.89%
China Shanghai Composite
3.23%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
28.32%
EBIT Growth (5y)
39.18%
EBIT to Interest (avg)
-13.29
Debt to EBITDA (avg)
3.01
Net Debt to Equity (avg)
0.08
Sales to Capital Employed (avg)
0.67
Tax Ratio
45.14%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.15%
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
376
Industry P/E
Price to Book Value
49.63
EV to EBIT
142.23
EV to EBITDA
119.06
EV to Capital Employed
8.20
EV to Sales
26.86
PEG Ratio
0.50
Dividend Yield
NA
ROCE (Latest)
5.77%
ROE (Latest)
13.21%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
39What is working for the Company
NET PROFIT(Q)
At CNY 37.53 MM has Grown at 347.82%
OPERATING CASH FLOW(Y)
Highest at CNY 303.61 MM
ROCE(HY)
Highest at 74.81%
PRE-TAX PROFIT(Q)
At CNY 40.56 MM has Grown at 153.88%
RAW MATERIAL COST(Y)
Fallen by -201.61% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 11.85 times
NET SALES(Q)
Highest at CNY 281.7 MM
EPS(Q)
Highest at CNY 0.82
-10What is not working for the Company
INTEREST(HY)
At CNY 56.03 MM has Grown at 2,556.8%
Here's what is working for Shenzhen Success Electronics Co. Ltd.
Net Sales
At CNY 281.7 MM has Grown at 105.95%
over average net sales of the previous four periods of CNY 136.78 MMMOJO Watch
Near term sales trend is extremely positive
Net Sales (CNY MM)
Net Profit
At CNY 37.53 MM has Grown at 347.82%
over average net sales of the previous four periods of CNY 8.38 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Pre-Tax Profit
At CNY 40.56 MM has Grown at 153.88%
over average net sales of the previous four periods of CNY 15.97 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Operating Cash Flow
Highest at CNY 303.61 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
Highest at CNY 281.7 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
EPS
Highest at CNY 0.82
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Inventory Turnover Ratio
Highest at 11.85 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -201.61% (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 56.03 MM has Grown at 2,556.8%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
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