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 28.32% and Operating profit at 39.18% over the last 5 years

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

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 155.86%, its profits have risen by 756.6% ; the PEG ratio of the company is 0.4

Market Beating performance in long term as well as near term

Along with generating 155.86% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

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.

182.81%

22.89

54.62%

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)

28.32%

EBIT Growth (5y)

39.18%

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

285

Industry P/E

Price to Book Value

37.70

EV to EBIT

111.58

EV to EBITDA

93.40

EV to Capital Employed

6.44

EV to Sales

21.07

PEG Ratio

0.38

Dividend Yield

ROCE (Latest)

5.77%

ROE (Latest)

13.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

44What is working for the Company

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

INVENTORY TURNOVER RATIO(HY)

Highest at 10.86 times

NET SALES(Q)

Highest at CNY 265.42 MM

OPERATING PROFIT(Q)

Highest at CNY 95.39 MM

OPERATING PROFIT MARGIN(Q)

Highest at 35.94 %

PRE-TAX PROFIT(Q)

Highest at CNY 69.72 MM

NET PROFIT(Q)

Highest at CNY 49.26 MM

EPS(Q)

Highest at CNY 0.18

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -95.44 MM

DEBT-EQUITY RATIO (HY)

Highest at 577.4 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.83 times

INTEREST(Q)

Highest at CNY 28.05 MM

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

Net Sales

At CNY 265.42 MM has Grown at 224.25%

over average net sales of the previous four periods of CNY 81.86 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 69.72 MM has Grown at 21,587.97%

over average net sales of the previous four periods of CNY -0.32 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 49.26 MM has Grown at 1,450.69%

over average net sales of the previous four periods of CNY -3.65 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 265.42 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 95.39 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 35.94 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 69.72 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 49.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.18

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 684.78 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 10.86 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 -54.73% (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 28.05 MM has Grown at 124.8%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -95.44 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 28.05 MM

in the last five periods and Increased by 124.8% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 577.4 %

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

Debtors Turnover Ratio

Lowest at 1.83 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio