Sino-Agri Leading Biosciences Co., Ltd. (603970) 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

Sino-Agri Leading Biosciences Co., Ltd.

Why is Sino-Agri Leading Biosciences 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 12.51% and Operating profit at 5.09% 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 16.07% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY -857.37 MM
ROCE(HY) Lowest at 11.8%
INTEREST COVERAGE RATIO(Q) Lowest at 561.77

With ROE of 13.90%, it has a very expensive valuation with a 2.32 Price to Book Value

Over the past year, while the stock has generated a return of -0.44%, its profits have fallen by -17.3%
At the current price, the company has a high dividend yield of 3.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.44% 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 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 Chemicals & Petrochemicals)

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

Is Sino-Agri Leading Biosciences Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sino-Agri Leading Biosciences Co., Ltd.

-100.0%

-0.97

28.80%

China Shanghai Composite

13.33%

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)

12.51%

EBIT Growth (5y)

5.09%

EBIT to Interest (avg)

11.52

Debt to EBITDA (avg)

3.27

Net Debt to Equity (avg)

0.91

Sales to Capital Employed (avg)

2.94

Tax Ratio

23.26%

Dividend Payout Ratio

59.48%

Pledged Shares

Institutional Holding

ROCE (avg)

14.45%

ROE (avg)

16.07%

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

2.32

EV to EBIT

19.76

EV to EBITDA

18.22

EV to Capital Employed

1.58

EV to Sales

0.51

PEG Ratio

Dividend Yield

3.38%

ROCE (Latest)

7.99%

ROE (Latest)

13.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.97% (YoY

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -857.37 MM

ROCE(HY)

Lowest at 11.8%

INTEREST COVERAGE RATIO(Q)

Lowest at 561.77

CASH AND EQV(HY)

Lowest at CNY 843.2 MM

DEBT-EQUITY RATIO (HY)

Highest at 138.88 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.82 times

INTEREST(Q)

Highest at CNY 7.43 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 20 MM

NET PROFIT(Q)

Lowest at CNY 11.09 MM

EPS(Q)

Lowest at CNY 0.03

Here's what is working for Sino-Agri Leading Biosciences Co., Ltd.

Raw Material Cost

Fallen by -3.97% (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 Sino-Agri Leading Biosciences Co., Ltd.

Interest

At CNY 7.43 MM has Grown at 62.52%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 561.77

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY -857.37 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 7.43 MM

in the last five periods and Increased by 62.52% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

Lowest at CNY 20 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 11.09 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

Fallen at -32.23%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 843.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 138.88 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 3.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio