Sichuan EM Technology Co., Ltd. (601208) 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

Sichuan EM Technology Co., Ltd.

Why is Sichuan EM Technology Co., Ltd. ?

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 21.95% and Operating profit at 17.13% 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 8.88% signifying low profitability per unit of shareholders funds

Flat results in Mar 25

NET PROFIT(HY) At CNY 35.73 MM has Grown at -53.62%
INTEREST(9M) At CNY 76.56 MM has Grown at 8.83%
ROCE(HY) Lowest at 4.83%

With ROE of 3.95%, it has a very expensive valuation with a 4.81 Price to Book Value

Over the past year, while the stock has generated a return of 138.52%, its profits have fallen by -25.7%
At the current price, the company has a high dividend yield of 0.4

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 Other Industrial Products)

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

Is Sichuan EM Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sichuan EM Technology Co., Ltd.

138.52%

3.01

57.97%

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)

21.95%

EBIT Growth (5y)

17.13%

EBIT to Interest (avg)

5.78

Debt to EBITDA (avg)

4.17

Net Debt to Equity (avg)

0.74

Sales to Capital Employed (avg)

0.46

Tax Ratio

15.90%

Dividend Payout Ratio

50.00%

Pledged Shares

Institutional Holding

ROCE (avg)

4.92%

ROE (avg)

8.88%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

122

Industry P/E

Price to Book Value

4.81

EV to EBIT

111.12

EV to EBITDA

49.32

EV to Capital Employed

3.07

EV to Sales

5.53

PEG Ratio

Dividend Yield

0.41%

ROCE (Latest)

2.76%

ROE (Latest)

3.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

10What is working for the Company

NET SALES(HY)

At CNY 2,338.57 MM has Grown at 28.58%

PRE-TAX PROFIT(Q)

At CNY 96.14 MM has Grown at 133.95%

RAW MATERIAL COST(Y)

Fallen by -48.24% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 8.46%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.72%

NET PROFIT(Q)

At CNY 91.76 MM has Grown at 101.92%

-13What is not working for the Company

NET PROFIT(HY)

At CNY 35.73 MM has Grown at -53.62%

INTEREST(9M)

At CNY 76.56 MM has Grown at 8.83%

ROCE(HY)

Lowest at 4.83%

DEBT-EQUITY RATIO (HY)

Highest at 74.57 %

Here's what is working for Sichuan EM Technology Co., Ltd.

Pre-Tax Profit

At CNY 96.14 MM has Grown at 133.95%

over average net sales of the previous four periods of CNY 41.09 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 2,338.57 MM has Grown at 28.58%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 91.76 MM has Grown at 101.92%

over average net sales of the previous four periods of CNY 45.44 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 8.46%

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 2.72%

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 -48.24% (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 Sichuan EM Technology Co., Ltd.

Debt-Equity Ratio

Highest at 74.57 % and Grown

In each half year 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

Interest

At CNY 76.56 MM has Grown at 8.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)