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

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 10.55% and Operating profit at -20.36% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at CNY -47.45 MM
NET PROFIT(HY) At CNY 59.98 MM has Grown at -23.14%
ROCE(HY) Lowest at 5.05%

With ROE of 4.74%, it has a very expensive valuation with a 4.61 Price to Book Value

Over the past year, while the stock has generated a return of -1.90%, its profits have fallen by -57.3%
At the current price, the company has a high dividend yield of 1.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.90% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sichuan Furong Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

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

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

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

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sichuan Furong Technology Co., Ltd.

20.91%

-0.49

46.82%

China Shanghai Composite

23.91%

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)

10.37%

EBIT Growth (5y)

-12.33%

EBIT to Interest (avg)

70.96

Debt to EBITDA (avg)

0.54

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

0.78

Tax Ratio

11.07%

Dividend Payout Ratio

92.59%

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

4.08

EV to EBIT

56.48

EV to EBITDA

42.47

EV to Capital Employed

3.59

EV to Sales

3.74

PEG Ratio

Dividend Yield

2.01%

ROCE (Latest)

6.36%

ROE (Latest)

5.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

Mildly 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

18What is working for the Company

NET SALES(Q)

Highest at CNY 761.52 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,447.32

RAW MATERIAL COST(Y)

Fallen by -48.02% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 57.89 MM

NET PROFIT(Q)

Highest at CNY 47.92 MM

EPS(Q)

Highest at CNY 0.05

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -53.55 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.17 times

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

Net Sales

Highest at CNY 761.52 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Interest Coverage Ratio

Highest at 1,447.32

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

Highest at CNY 57.89 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 57.89 MM has Grown at 79.7%

over average net sales of the previous four periods of CNY 32.22 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 47.92 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 47.92 MM has Grown at 65.07%

over average net sales of the previous four periods of CNY 29.03 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -48.02% (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 Furong Technology Co., Ltd.

Operating Cash Flow

Lowest at CNY -53.55 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)

Inventory Turnover Ratio

Lowest at 5.17 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio