Sinoma Energy Conservation Ltd. (603126) 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

Sinoma Energy Conservation Ltd.

Why is Sinoma Energy Conservation Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.36% and Operating profit at -193.60% over the last 5 years

With a growth in Operating Profit of 37.83%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 14 consecutive negative quarters
OPERATING CASH FLOW(Y) Highest at CNY 132.27 MM
RAW MATERIAL COST(Y) Fallen by -35.87% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 7.93 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 5.63%, its profits have fallen by -137.1%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 5.63% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sinoma Energy Conservation Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Sinoma Energy Conservation Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Sinoma Energy Conservation Ltd.

23.32%

1.04

29.12%

China Shanghai Composite

21.43%

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)

6.95%

EBIT Growth (5y)

-29.67%

EBIT to Interest (avg)

38.83

Debt to EBITDA (avg)

0.17

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.88

Tax Ratio

33.01%

Dividend Payout Ratio

44.44%

Pledged Shares

Institutional Holding

ROCE (avg)

7.81%

ROE (avg)

7.70%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

117

Industry P/E

Price to Book Value

2.22

EV to EBIT

155.76

EV to EBITDA

50.77

EV to Capital Employed

1.89

EV to Sales

1.26

PEG Ratio

0.44

Dividend Yield

0.07%

ROCE (Latest)

1.21%

ROE (Latest)

1.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

26What is working for the Company

NET SALES(HY)

At CNY 2,699.38 MM has Grown at 96.16%

NET PROFIT(Q)

At CNY 10.69 MM has Grown at 211.77%

CASH AND EQV(HY)

Highest at CNY 2,288.74 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 14.24 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.48 times

-10What is not working for the Company

INTEREST(HY)

At CNY 13.93 MM has Grown at 53.86%

RAW MATERIAL COST(Y)

Grown by 6.29% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 36.45 %

Here's what is working for Sinoma Energy Conservation Ltd.

Net Sales

At CNY 2,699.38 MM has Grown at 96.16%

Year on Year (YoY)

MOJO Watch

Sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 10.69 MM has Grown at 211.77%

over average net sales of the previous four periods of CNY 3.43 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 2,288.74 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 14.24 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.48 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Sinoma Energy Conservation Ltd.

Interest

At CNY 13.93 MM has Grown at 53.86%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 36.45 %

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

Raw Material Cost

Grown by 6.29% (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