Sinomach Precision Industry Group Co., Ltd. (002046) 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

Sinomach Precision Industry Group Co., Ltd.

Why is Sinomach Precision Industry Group Co., Ltd. ?

Flat results in Sep 25

NET PROFIT(Q) At CNY 19.82 MM has Fallen at -69.37%
OPERATING CASH FLOW(Y) Lowest at CNY -429.5 MM
PRE-TAX PROFIT(Q) At CNY 40.35 MM has Fallen at -50.25%

With ROE of 6.62%, it has a attractive valuation with a 3.47 Price to Book Value

Over the past year, while the stock has generated a return of 141.19%, its profits have risen by 8% ; the PEG ratio of the company is 6.3
At the current price, the company has a high dividend yield of 0.7

Market Beating performance in long term as well as near term

Along with generating 141.19% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sinomach Precision Industry Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Sinomach Precision Industry Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sinomach Precision Industry Group Co., Ltd.

150.88%

4.67

61.08%

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)

6.64%

EBIT Growth (5y)

13.56%

EBIT to Interest (avg)

6.92

Debt to EBITDA (avg)

0.90

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

0.59

Tax Ratio

12.66%

Dividend Payout Ratio

39.46%

Pledged Shares

Institutional Holding

ROCE (avg)

5.35%

ROE (avg)

6.52%

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

3.47

EV to EBIT

67.65

EV to EBITDA

35.45

EV to Capital Employed

3.85

EV to Sales

4.87

PEG Ratio

6.33

Dividend Yield

0.74%

ROCE (Latest)

5.68%

ROE (Latest)

6.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Mildly Bearish

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

9What is working for the Company

NET SALES(HY)

At CNY 1,576.74 MM has Grown at 36.52%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -17.18% (YoY

CASH AND EQV(HY)

Highest at CNY 2,896.47 MM

-10What is not working for the Company

NET PROFIT(Q)

At CNY 19.82 MM has Fallen at -69.37%

OPERATING CASH FLOW(Y)

Lowest at CNY -429.5 MM

PRE-TAX PROFIT(Q)

At CNY 40.35 MM has Fallen at -50.25%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.65 times

OPERATING PROFIT(Q)

Lowest at CNY 22.86 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.36 %

Here's what is working for Sinomach Precision Industry Group Co., Ltd.

Net Sales

At CNY 1,576.74 MM has Grown at 36.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 2,896.47 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -17.18% (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 Sinomach Precision Industry Group Co., Ltd.

Net Profit

At CNY 19.82 MM has Fallen at -69.37%

over average net sales of the previous four periods of CNY 64.71 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 40.35 MM has Fallen at -50.25%

over average net sales of the previous four periods of CNY 81.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -429.5 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 22.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 2.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio