Why is Sineng Electric Co., Ltd. ?
1
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 44.53% and Operating profit at 52.64% 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 12.25% signifying low profitability per unit of shareholders funds
2
Negative results in Mar 25
- NET SALES(Q) At CNY 828.84 MM has Fallen at -30.4%
- INTEREST(Q) At CNY 14.49 MM has Grown at 25.24%
- INTEREST COVERAGE RATIO(Q) Lowest at 652.87
3
With ROE of 20.12%, it has a expensive valuation with a 5.63 Price to Book Value
- Over the past year, while the stock has generated a return of 2.82%, its profits have risen by 47.6% ; the PEG ratio of the company is 0.6
- At the current price, the company has a high dividend yield of 0.2
4
Underperformed the market in the last 1 year
- The stock has generated a return of 2.82% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%
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 Electronics & Appliances)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Sineng Electric Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Sineng Electric Co., Ltd.
-1.48%
0.60
66.42%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
44.53%
EBIT Growth (5y)
52.64%
EBIT to Interest (avg)
7.29
Debt to EBITDA (avg)
4.19
Net Debt to Equity (avg)
0.72
Sales to Capital Employed (avg)
1.00
Tax Ratio
10.57%
Dividend Payout Ratio
7.34%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.73%
ROE (avg)
12.25%
Valuation Key Factors 
Factor
Value
P/E Ratio
28
Industry P/E
Price to Book Value
5.63
EV to EBIT
29.21
EV to EBITDA
25.12
EV to Capital Employed
3.55
EV to Sales
2.91
PEG Ratio
0.60
Dividend Yield
0.24%
ROCE (Latest)
12.17%
ROE (Latest)
20.12%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
9What is working for the Company
NET PROFIT(HY)
At CNY 201.99 MM has Grown at 60.37%
ROCE(HY)
Highest at 22.41%
RAW MATERIAL COST(Y)
Fallen by -9.68% (YoY
CASH AND EQV(HY)
Highest at CNY 4,434.94 MM
-17What is not working for the Company
NET SALES(Q)
At CNY 828.84 MM has Fallen at -30.4%
INTEREST(Q)
At CNY 14.49 MM has Grown at 25.24%
INTEREST COVERAGE RATIO(Q)
Lowest at 652.87
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.67%
Here's what is working for Sineng Electric Co., Ltd.
Net Profit
At CNY 201.99 MM has Grown at 60.37%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Cash and Eqv
Highest at CNY 4,434.94 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -9.68% (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 Sineng Electric Co., Ltd.
Net Sales
At CNY 828.84 MM has Fallen at -30.4%
over average net sales of the previous four periods of CNY 1,190.92 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Interest
At CNY 14.49 MM has Grown at 25.24%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 652.87
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at CNY 14.49 MM
in the last five periods and Increased by 25.24% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debtors Turnover Ratio
Lowest at 1.67%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






