Shenzhen Vital New Material Co. Ltd. () 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 Vital New Material Co. Ltd.

Why is Shenzhen Vital New Material Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.59% and Operating profit at -7.57% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(9M) At CNY 0.51 MM has Grown at 160.46%
OPERATING CASH FLOW(Y) Lowest at CNY -6.36 MM
INTEREST COVERAGE RATIO(Q) Lowest at 8,587.83

With ROE of 7.18%, it has a fair valuation with a 2.20 Price to Book Value

Over the past year, while the stock has generated a return of 74.90%, its profits have fallen by -19.2%
At the current price, the company has a high dividend yield of 1.2

Market Beating Performance

The stock has generated a return of 74.90% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Vital New Material Co. Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

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

Is Shenzhen Vital New Material Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Vital New Material Co. Ltd.

119.6%

1.29

68.03%

China Shanghai Composite

14.61%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.59%

EBIT Growth (5y)

-7.57%

EBIT to Interest (avg)

57.68

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.88

Tax Ratio

11.64%

Dividend Payout Ratio

52.49%

Pledged Shares

Institutional Holding

ROCE (avg)

2,377.60%

ROE (avg)

2,114.71%

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

2.20

EV to EBIT

27.38

EV to EBITDA

24.29

EV to Capital Employed

2.75

EV to Sales

1.58

PEG Ratio

Dividend Yield

1.24%

ROCE (Latest)

10.04%

ROE (Latest)

7.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Bullish

OBV

Mildly Bullish

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

9What is working for the Company

NET SALES(Q)

At CNY 308.6 MM has Grown at 43.27%

INVENTORY TURNOVER RATIO(HY)

Highest at 13.16%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.54%

-15What is not working for the Company

INTEREST(9M)

At CNY 0.51 MM has Grown at 160.46%

OPERATING CASH FLOW(Y)

Lowest at CNY -6.36 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 8,587.83

RAW MATERIAL COST(Y)

Grown by 19.93% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -40.08 %

Here's what is working for Shenzhen Vital New Material Co. Ltd.

Net Sales

At CNY 308.6 MM has Grown at 43.27%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 13.16%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.54%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Shenzhen Vital New Material Co. Ltd.

Interest

At CNY 0.38 MM has Grown at 339.88%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -6.36 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)

Interest Coverage Ratio

Lowest at 8,587.83

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -40.08 %

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

Raw Material Cost

Grown by 19.93% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales