Sino Wealth Electronic Ltd. (300327) 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 Wealth Electronic Ltd.

Why is Sino Wealth Electronic Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.37% and Operating profit at -28.82% over the last 5 years

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

INTEREST(HY) At CNY 1.01 MM has Grown at 33.26%
ROCE(HY) Lowest at 5.87%
INTEREST COVERAGE RATIO(Q) Lowest at 603.63

With ROE of 3.07%, it has a very expensive valuation with a 5.02 Price to Book Value

Over the past year, while the stock has generated a return of -1.91%, its profits have fallen by -51%
At the current price, the company has a high dividend yield of 0.8

Below par performance in long term as well as near term

Along with generating -1.91% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Other Electrical Equipment)

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

Is Sino Wealth Electronic Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Sino Wealth Electronic Ltd.

0.17%

0.30

46.08%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.37%

EBIT Growth (5y)

-28.82%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

0.75

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

50.65%

Pledged Shares

Institutional Holding

ROCE (avg)

28.36%

ROE (avg)

14.85%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

164

Industry P/E

Price to Book Value

5.02

EV to EBIT

294.78

EV to EBITDA

114.72

EV to Capital Employed

6.10

EV to Sales

6.51

PEG Ratio

Dividend Yield

0.76%

ROCE (Latest)

2.07%

ROE (Latest)

3.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

OPERATING CASH FLOW(Y)

Highest at CNY 232.64 MM

RAW MATERIAL COST(Y)

Fallen by -10.2% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.59 times

-23What is not working for the Company

INTEREST(HY)

At CNY 1.01 MM has Grown at 33.26%

ROCE(HY)

Lowest at 5.87%

INTEREST COVERAGE RATIO(Q)

Lowest at 603.63

PRE-TAX PROFIT(Q)

At CNY 6.39 MM has Fallen at -50.35%

NET SALES(Q)

Lowest at CNY 314.46 MM

OPERATING PROFIT(Q)

Lowest at CNY 2.73 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.87 %

NET PROFIT(Q)

At CNY 16.5 MM has Fallen at -36.32%

Here's what is working for Sino Wealth Electronic Ltd.

Operating Cash Flow

Highest at CNY 232.64 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 1.59 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -10.2% (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 Wealth Electronic Ltd.

Interest

At CNY 1.01 MM has Grown at 33.26%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 603.63

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 6.39 MM has Fallen at -50.35%

over average net sales of the previous four periods of CNY 12.86 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Sales

Lowest at CNY 314.46 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 2.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.87 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 16.5 MM has Fallen at -36.32%

over average net sales of the previous four periods of CNY 25.92 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)