Sinomag Technology Co., Ltd. (300835) 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

Sinomag Technology Co., Ltd.

Why is Sinomag Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 17.00% and Operating profit at 5.21% over the last 5 years

Negative results in Mar 26

NET PROFIT(HY) At CNY 15.64 MM has Grown at -59.89%
INTEREST(HY) At CNY 12.03 MM has Grown at 62.29%
RAW MATERIAL COST(Y) Grown by 13.63% (YoY)

With ROE of 8.90%, it has a very expensive valuation with a 9.78 Price to Book Value

Over the past year, while the stock has generated a return of 363.05%, its profits have risen by 12.8% ; the PEG ratio of the company is 8.6
At the current price, the company has a high dividend yield of 0.2

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 Electronics & Appliances)

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

Is Sinomag Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sinomag Technology Co., Ltd.

200.87%

8.89

81.81%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.00%

EBIT Growth (5y)

5.21%

EBIT to Interest (avg)

9.88

Debt to EBITDA (avg)

2.31

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

0.61

Tax Ratio

14.79%

Dividend Payout Ratio

13.90%

Pledged Shares

Institutional Holding

ROCE (avg)

7.73%

ROE (avg)

10.02%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

255

Industry P/E

Price to Book Value

22.72

EV to EBIT

274.75

EV to EBITDA

163.71

EV to Capital Employed

14.66

EV to Sales

21.73

PEG Ratio

19.94

Dividend Yield

0.05%

ROCE (Latest)

5.33%

ROE (Latest)

8.90%

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

Mildly Bearish

OBV

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

8What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 53.97 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.99 times

NET SALES(Q)

Highest at CNY 385.19 MM

PRE-TAX PROFIT(Q)

At CNY 48.85 MM has Grown at 76.03%

-10What is not working for the Company

NET PROFIT(9M)

At CNY 59.92 MM has Grown at -37.65%

INTEREST(9M)

At CNY 15.35 MM has Grown at 21.06%

RAW MATERIAL COST(Y)

Grown by 9.3% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.68 times

Here's what is working for Sinomag Technology Co., Ltd.

Net Sales

Highest at CNY 385.19 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 48.85 MM has Grown at 76.03%

over average net sales of the previous four periods of CNY 27.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Lowest at 53.97 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.99 times

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 Sinomag Technology Co., Ltd.

Net Profit

At CNY 59.92 MM has Grown at -37.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 15.35 MM has Grown at 21.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 2.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 9.3% (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