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

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 22.75% and Operating profit at 12.89% 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 Sep 25

ROCE(HY) Lowest at 4.29%
INTEREST(Q) Highest at CNY 35.13 MM

With ROE of 3.95%, it has a very expensive valuation with a 4.46 Price to Book Value

Over the past year, while the stock has generated a return of 250.06%, 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 buy?

Overall Portfolio exposure to Sichuan EM Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sichuan EM Technology Co., Ltd.

679.28%

5.17

64.99%

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)

19.62%

EBIT Growth (5y)

3.66%

EBIT to Interest (avg)

5.78

Debt to EBITDA (avg)

4.17

Net Debt to Equity (avg)

0.74

Sales to Capital Employed (avg)

0.49

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

132

Industry P/E

Price to Book Value

7.91

EV to EBIT

158.81

EV to EBITDA

78.81

EV to Capital Employed

6.02

EV to Sales

9.21

PEG Ratio

1.55

Dividend Yield

0.38%

ROCE (Latest)

3.79%

ROE (Latest)

5.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

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

28What is working for the Company

ROCE(HY)

Highest at 7.09%

NET SALES(Q)

Highest at CNY 1,443.57 MM

RAW MATERIAL COST(Y)

Fallen by -17.82% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 39.56 %

INVENTORY TURNOVER RATIO(HY)

Highest at 9.55 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.81 times

PRE-TAX PROFIT(Q)

Highest at CNY 212.2 MM

NET PROFIT(Q)

Highest at CNY 186.52 MM

EPS(Q)

Highest at CNY 0.18

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Pre-Tax Profit

At CNY 212.2 MM has Grown at 235.41%

over average net sales of the previous four periods of CNY 63.27 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

Highest at CNY 1,443.57 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 186.52 MM has Grown at 162.66%

over average net sales of the previous four periods of CNY 71.01 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 212.2 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 186.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.18

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at 39.56 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 9.55 times

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 2.81 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 -17.82% (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.

Non Operating Income

Highest at CNY 0.48 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income