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Sichuan Furong Technology Co., Ltd.

  • Market Cap: Mid Cap
  • Industry: IT - Hardware
  • ISIN: CNE100003LC2
  • SHG: 603327
CNY
8.50
0.03 (0.35%)

Sep 22

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Sichuan Furong Technology Co., Ltd.

Why is Sichuan Furong Technology Co., Ltd. ?

1
Poor Management Efficiency with a low ROCE of 17.78%
  • The company has been able to generate a Return on Capital Employed (avg) of 17.78% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 10.37% and Operating profit at -12.33% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 14.92% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 10.37% and Operating profit at -12.33% over the last 5 years
4
Flat results in Jun 26
  • RAW MATERIAL COST(Y) Grown by 22.61% (YoY)
  • INVENTORY TURNOVER RATIO(HY) Lowest at 5.42 times
  • OPERATING PROFIT(Q) Lowest at CNY 49.79 MM
5
With ROE of 5.76%, it has a very expensive valuation with a 4.07 Price to Book Value
  • Over the past year, while the stock has generated a return of -12.28%, its profits have risen by 25.6%
  • At the current price, the company has a high dividend yield of 0.7
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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.
-12.28%
-0.66
50.60%
China Shanghai Composite
3.23%
0.22
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
10.37%
EBIT Growth (5y)
-12.33%
EBIT to Interest (avg)
49.91
Debt to EBITDA (avg)
0.87
Net Debt to Equity (avg)
0.18
Sales to Capital Employed (avg)
0.78
Tax Ratio
11.48%
Dividend Payout Ratio
92.59%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.06%
ROE (avg)
14.92%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
71
Industry P/E
Price to Book Value
4.07
EV to EBIT
56.36
EV to EBITDA
42.38
EV to Capital Employed
3.58
EV to Sales
3.73
PEG Ratio
NA
Dividend Yield
0.73%
ROCE (Latest)
6.36%
ROE (Latest)
5.76%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company
NET SALES(HY)

At CNY 1,456.94 MM has Grown at 23.53%

NET PROFIT(HY)

At CNY 68.93 MM has Grown at 71.36%

-9What is not working for the Company
RAW MATERIAL COST(Y)

Grown by 22.61% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.42 times

OPERATING PROFIT(Q)

Lowest at CNY 49.79 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.16 %

PRE-TAX PROFIT(Q)

Lowest at CNY 22.98 MM

NET PROFIT(Q)

At CNY 21.01 MM has Fallen at -41.7%

EPS(Q)

Lowest at CNY 0.02

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

Net Sales
At CNY 1,456.94 MM has Grown at 23.53%
Year on Year (YoY)
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Sichuan Furong Technology Co., Ltd.

Pre-Tax Profit
At CNY 22.98 MM has Fallen at -43.54%
over average net sales of the previous four periods of CNY 40.7 MM
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Profit
Lowest at CNY 49.79 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin
Lowest at 7.16 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at CNY 22.98 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit
At CNY 21.01 MM has Fallen at -41.7%
over average net sales of the previous four periods of CNY 36.04 MM
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS
Lowest at CNY 0.02
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio
Lowest at 5.42 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost
Grown by 22.61% (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

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