Shenzhen Sunxing Light Alloys Materials Co., Ltd. (603978) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shenzhen Sunxing Light Alloys Materials Co., Ltd.

Why is Shenzhen Sunxing Light Alloys Materials Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.01%

The company has been able to generate a Return on Capital Employed (avg) of 1.01% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 25.42% and Operating profit at -235.55% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 0.87% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 25.42% and Operating profit at -235.55% 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 60.74%, its profits have fallen by -70.3%

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 Non - Ferrous Metals)

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

Is Shenzhen Sunxing Light Alloys Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Sunxing Light Alloys Materials Co., Ltd.

60.74%

3.72

53.17%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.42%

EBIT Growth (5y)

-235.55%

EBIT to Interest (avg)

-0.67

Debt to EBITDA (avg)

44.34

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

0.59

Tax Ratio

5.01%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.01%

ROE (avg)

0.87%

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

1.04

EV to EBIT

-13.94

EV to EBITDA

-30.56

EV to Capital Employed

1.02

EV to Sales

1.11

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.30%

ROE (Latest)

-16.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -57.15 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.33%

NET SALES(Q)

Highest at CNY 739 MM

RAW MATERIAL COST(Y)

Fallen by -13.71% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 5.44 MM

NET PROFIT(Q)

At CNY 2.42 MM has Grown at 103.33%

EPS(Q)

Highest at CNY 0.01

-11What is not working for the Company

NET PROFIT(HY)

At CNY -190.59 MM has Grown at -63.38%

ROCE(HY)

Lowest at -15.13%

Here's what is working for Shenzhen Sunxing Light Alloys Materials Co., Ltd.

Operating Cash Flow

Highest at CNY -57.15 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 739 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 2.33% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

At CNY 739 MM has Grown at 15.85%

over average net sales of the previous four periods of CNY 637.89 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 5.44 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 5.44 MM has Grown at 107.94%

over average net sales of the previous four periods of CNY -68.48 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 2.42 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 2.42 MM has Grown at 103.33%

over average net sales of the previous four periods of CNY -72.8 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -13.71% (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 Sunxing Light Alloys Materials Co., Ltd.

Non Operating Income

Highest at CNY 2.85 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income