Sichuan Furong Technology Co., Ltd. (603327) 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 Furong Technology Co., Ltd.

Why is Sichuan Furong Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 12.62% and Operating profit at -19.36% over the last 5 years

The company has declared Negative results for the last 10 consecutive quarters

INTEREST(HY) At CNY 11.56 MM has Grown at 57.93%
OPERATING CASH FLOW(Y) Lowest at CNY 52.63 MM
ROCE(HY) Lowest at 5.55%

With ROE of 4.74%, it has a very expensive valuation with a 4.69 Price to Book Value

Over the past year, while the stock has generated a return of 33.61%, its profits have fallen by -57.3%
At the current price, the company has a high dividend yield of 1.4

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 IT - Hardware)

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

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

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sichuan Furong Technology Co., Ltd.

-100.0%

0.16

45.16%

China Shanghai Composite

15.19%

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)

12.62%

EBIT Growth (5y)

-19.36%

EBIT to Interest (avg)

70.96

Debt to EBITDA (avg)

0.54

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

0.79

Tax Ratio

11.07%

Dividend Payout Ratio

90.04%

Pledged Shares

Institutional Holding

ROCE (avg)

17.78%

ROE (avg)

14.92%

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

4.69

EV to EBIT

88.50

EV to EBITDA

52.50

EV to Capital Employed

3.77

EV to Sales

3.98

PEG Ratio

Dividend Yield

1.40%

ROCE (Latest)

4.26%

ROE (Latest)

4.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly 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

5What is working for the Company

NET SALES(HY)

At CNY 1,215.3 MM has Grown at 26.98%

DEBTORS TURNOVER RATIO(HY)

Highest at 6.24%

-31What is not working for the Company

INTEREST(HY)

At CNY 11.56 MM has Grown at 57.93%

OPERATING CASH FLOW(Y)

Lowest at CNY 52.63 MM

ROCE(HY)

Lowest at 5.55%

INTEREST COVERAGE RATIO(Q)

Lowest at 399.62

PRE-TAX PROFIT(Q)

At CNY 23.97 MM has Fallen at -47.11%

NET PROFIT(Q)

At CNY 19.89 MM has Fallen at -49.45%

RAW MATERIAL COST(Y)

Grown by 43.28% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 22.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.06 %

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

Net Sales

At CNY 1,215.3 MM has Grown at 26.98%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 6.24%

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 Sichuan Furong Technology Co., Ltd.

Interest

At CNY 11.56 MM has Grown at 57.93%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 52.63 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 399.62

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 23.97 MM has Fallen at -47.11%

over average net sales of the previous four periods of CNY 45.32 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 19.89 MM has Fallen at -49.45%

over average net sales of the previous four periods of CNY 39.35 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 22.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.06 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 43.28% (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