Shenzhen Sunway Communication Co., Ltd. (300136) 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 Sunway Communication Co., Ltd.

Why is Shenzhen Sunway Communication Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.76% and Operating profit at 2.04% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 1,083.51 MM
CASH AND EQV(HY) Lowest at CNY 3,191.92 MM
NET SALES(Q) At CNY 1,992.22 MM has Fallen at -10.56%

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 Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Shenzhen Sunway Communication Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Sunway Communication Co., Ltd.

348.47%

6.00

77.32%

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)

5.76%

EBIT Growth (5y)

2.04%

EBIT to Interest (avg)

8.95

Debt to EBITDA (avg)

1.32

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.79

Tax Ratio

9.23%

Dividend Payout Ratio

6.80%

Pledged Shares

Institutional Holding

ROCE (avg)

7.09%

ROE (avg)

10.46%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

139

Industry P/E

Price to Book Value

12.82

EV to EBIT

111.59

EV to EBITDA

66.29

EV to Capital Employed

10.55

EV to Sales

11.44

PEG Ratio

4.77

Dividend Yield

0.09%

ROCE (Latest)

9.45%

ROE (Latest)

9.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

OBV

No Trend

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

7What is working for the Company

NET PROFIT(HY)

At CNY 330.86 MM has Grown at 59.49%

ROCE(HY)

Highest at 9.55%

RAW MATERIAL COST(Y)

Fallen by -24.37% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.81 times

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,083.51 MM

CASH AND EQV(HY)

Lowest at CNY 3,191.92 MM

NET SALES(Q)

At CNY 1,992.22 MM has Fallen at -10.56%

OPERATING PROFIT(Q)

Lowest at CNY 165.99 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.33 %

PRE-TAX PROFIT(Q)

At CNY 135.09 MM has Fallen at -37.92%

NET PROFIT(Q)

At CNY 108.82 MM has Fallen at -38.42%

Here's what is working for Shenzhen Sunway Communication Co., Ltd.

Inventory Turnover Ratio

Highest at 4.81 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 -24.37% (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 Sunway Communication Co., Ltd.

Operating Cash Flow

Lowest at CNY 1,083.51 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)

Net Sales

At CNY 1,992.22 MM has Fallen at -10.56%

over average net sales of the previous four periods of CNY 2,227.44 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 165.99 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.33 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 135.09 MM has Fallen at -37.92%

over average net sales of the previous four periods of CNY 217.63 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 108.82 MM has Fallen at -38.42%

over average net sales of the previous four periods of CNY 176.71 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Cash and Eqv

Lowest at CNY 3,191.92 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents