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

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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 0.58% and Operating profit at -220.92% over the last 5 years

With a growth in Net Profit of 44.43%, the company declared Very Positive results in Mar 25

The company has declared positive results in Jan 70 after 14 consecutive negative quarters
INVENTORY TURNOVER RATIO(HY) Highest at 7.15%

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 40.58%, its profits have fallen by -137.1%
At the current price, the company has a high dividend yield of 0.1

Market Beating Performance

The stock has generated a return of 40.58% in the last 1 year, much higher than market (China Shanghai Composite) returns of 26.20%

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, High Return

Absolute

Risk Adjusted

Volatility

Sinoma Energy Conservation Ltd.

36.36%

1.40

31.16%

China Shanghai Composite

26.21%

1.87

14.02%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.58%

EBIT Growth (5y)

-220.92%

EBIT to Interest (avg)

38.83

Debt to EBITDA (avg)

0.17

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.90

Tax Ratio

33.01%

Dividend Payout Ratio

40.32%

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

NA (Loss Making)

Industry P/E

Price to Book Value

1.99

EV to EBIT

-35.12

EV to EBITDA

-136.23

EV to Capital Employed

1.90

EV to Sales

1.73

PEG Ratio

Dividend Yield

0.08%

ROCE (Latest)

-5.41%

ROE (Latest)

-2.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

INVENTORY TURNOVER RATIO(HY)

Highest at 7.15%

-29What is not working for the Company

INTEREST(HY)

At CNY 9.05 MM has Grown at 42.17%

NET SALES(9M)

At CNY 1,783.2 MM has Grown at -16.58%

PRE-TAX PROFIT(Q)

At CNY -10.35 MM has Fallen at -283.88%

NET PROFIT(Q)

At CNY -8.36 MM has Fallen at -540.09%

ROCE(HY)

Lowest at -1.32%

RAW MATERIAL COST(Y)

Grown by 24.51% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -16.61 MM

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

Inventory Turnover Ratio

Highest at 7.15%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Interest

At CNY 9.05 MM has Grown at 42.17%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -10.35 MM has Fallen at -283.88%

over average net sales of the previous four periods of CNY 5.63 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -8.36 MM has Fallen at -540.09%

over average net sales of the previous four periods of CNY 1.9 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,783.2 MM has Grown at -16.58%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -16.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Raw Material Cost

Grown by 24.51% (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