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

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 25.46% and Operating profit at -236.05% 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 25.46% and Operating profit at -236.05% 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 70.35%, 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.

77.61%

2.83

53.99%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.45%

EBIT Growth (5y)

-176.57%

EBIT to Interest (avg)

-0.67

Debt to EBITDA (avg)

44.34

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

0.73

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

1.05

EV to EBIT

-204.07

EV to EBITDA

40.01

EV to Capital Employed

1.03

EV to Sales

0.92

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.50%

ROE (Latest)

-3.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

24What is working for the Company

NET SALES(HY)

At CNY 1,843.82 MM has Grown at 27.06%

ROCE(HY)

Highest at -3.76%

RAW MATERIAL COST(Y)

Fallen by -87.04% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 2.37 times

PRE-TAX PROFIT(Q)

Highest at CNY 21.23 MM

NET PROFIT(Q)

Highest at CNY 18.04 MM

EPS(Q)

Highest at CNY 0.09

-12What is not working for the Company

INTEREST(HY)

At CNY 36.66 MM has Grown at 59.7%

OPERATING CASH FLOW(Y)

Lowest at CNY -153.4 MM

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

Pre-Tax Profit

At CNY 21.23 MM has Grown at 217.36%

over average net sales of the previous four periods of CNY -18.09 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 18.04 MM has Grown at 191.01%

over average net sales of the previous four periods of CNY -19.82 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 1,843.82 MM has Grown at 27.06%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 21.23 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 18.04 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.09

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 2.37 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -87.04% (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.

Interest

At CNY 36.66 MM has Grown at 59.7%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -153.4 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)