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

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 14.35% and Operating profit at 10.82% 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 424.00%, 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.

424.0%

11.65

57.17%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.35%

EBIT Growth (5y)

10.82%

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)

0.74

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

51.18

EV to EBIT

-839.89

EV to EBITDA

-10547.75

EV to Capital Employed

45.38

EV to Sales

44.88

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.40%

ROE (Latest)

-5.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

10What is working for the Company

NET SALES(HY)

At CNY 146.54 MM has Grown at 31.9%

RAW MATERIAL COST(Y)

Fallen by -266.05% (YoY

NET PROFIT(9M)

Higher at CNY -11.84 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 7.15 times

-26What is not working for the Company

INTEREST(HY)

At CNY 2.59 MM has Grown at 266.84%

OPERATING CASH FLOW(Y)

Lowest at CNY -46.02 MM

PRE-TAX PROFIT(Q)

At CNY -5.33 MM has Fallen at -54.65%

CASH AND EQV(HY)

Lowest at CNY 21.77 MM

NET SALES(Q)

At CNY 57.77 MM has Fallen at -11.16%

OPERATING PROFIT(Q)

Lowest at CNY -4.26 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -7.38 %

NET PROFIT(Q)

Lowest at CNY -7.38 MM

EPS(Q)

Lowest at CNY -0.03

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

Inventory Turnover Ratio

Highest at 7.15 times

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 -266.05% (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 2.59 MM has Grown at 266.84%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY -7.38 MM has Fallen at -78.18%

over average net sales of the previous four periods of CNY -4.14 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -46.02 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)

Pre-Tax Profit

At CNY -5.33 MM has Fallen at -54.65%

over average net sales of the previous four periods of CNY -3.45 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 57.77 MM has Fallen at -11.16%

over average net sales of the previous four periods of CNY 65.03 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -4.26 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -7.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY -7.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 21.77 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents