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 8.44% and Operating profit at -10.31% over the last 5 years

With a growth in Net Profit of 284.94%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 2 consecutive negative quarters
RAW MATERIAL COST(Y) Fallen by -15.11% (YoY)
NET SALES(Q) Highest at CNY 2,759.29 MM
PRE-TAX PROFIT(Q) Highest at CNY 383.7 MM

With ROE of 8.26%, it has a fair valuation with a 3.33 Price to Book Value

Over the past year, while the stock has generated a return of 133.29%, its profits have risen by 15.8% ; the PEG ratio of the company is 2.6
At the current price, the company has a high dividend yield of 0.2

Consistent Returns over the last 3 years

Along with generating 133.29% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Sunway Communication Co., Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Sunway Communication Co., Ltd.

133.29%

3.40

69.48%

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)

8.44%

EBIT Growth (5y)

-10.31%

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

7.28%

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

Industry P/E

Price to Book Value

3.33

EV to EBIT

50.34

EV to EBITDA

19.53

EV to Capital Employed

2.93

EV to Sales

3.04

PEG Ratio

2.56

Dividend Yield

0.20%

ROCE (Latest)

5.82%

ROE (Latest)

8.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

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

RAW MATERIAL COST(Y)

Fallen by -15.11% (YoY

NET SALES(Q)

Highest at CNY 2,759.29 MM

PRE-TAX PROFIT(Q)

Highest at CNY 383.7 MM

NET PROFIT(Q)

At CNY 324.88 MM has Grown at 109.82%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Pre-Tax Profit

At CNY 383.7 MM has Grown at 121.94%

over average net sales of the previous four periods of CNY 172.89 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

Highest at CNY 2,759.29 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 2,759.29 MM has Grown at 26.85%

over average net sales of the previous four periods of CNY 2,175.17 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 383.7 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 324.88 MM has Grown at 109.82%

over average net sales of the previous four periods of CNY 154.83 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -15.11% (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