Sinosteel Engineering & Technology Co., Ltd. (000928) 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

Sinosteel Engineering & Technology Co., Ltd.

Why is Sinosteel Engineering & Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -3.13% and Operating profit at -10.10% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

NET PROFIT(HY) At CNY 141.05 MM has Grown at -67.42%
ROCE(HY) Lowest at 5.1%
NET SALES(Q) At CNY 2,879.4 MM has Fallen at -18.17%

With ROE of 5.81%, it has a attractive valuation with a 0.96 Price to Book Value

Over the past year, while the stock has generated a return of -19.87%, its profits have fallen by -44.3%
At the current price, the company has a high dividend yield of 7.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.87% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sinosteel Engineering & Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Sinosteel Engineering & Technology Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sinosteel Engineering & Technology Co., Ltd.

-13.58%

-0.53

30.13%

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)

-3.13%

EBIT Growth (5y)

-10.10%

EBIT to Interest (avg)

9.72

Debt to EBITDA (avg)

0.40

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

1.43

Tax Ratio

30.82%

Dividend Payout Ratio

62.09%

Pledged Shares

Institutional Holding

ROCE (avg)

14.32%

ROE (avg)

9.90%

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

0.85

EV to EBIT

3.76

EV to EBITDA

3.39

EV to Capital Employed

0.60

EV to Sales

0.14

PEG Ratio

Dividend Yield

4.10%

ROCE (Latest)

16.08%

ROE (Latest)

5.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,590.15 MM

CASH AND EQV(HY)

Highest at CNY 19,994.72 MM

OPERATING PROFIT(Q)

Highest at CNY 322.91 MM

PRE-TAX PROFIT(Q)

Highest at CNY 266.38 MM

NET PROFIT(Q)

Highest at CNY 217.39 MM

EPS(Q)

Highest at CNY 0.15

-12What is not working for the Company

NET PROFIT(9M)

At CNY 358.44 MM has Grown at -42.73%

ROCE(HY)

Lowest at 5.46%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.6 times

INTEREST(Q)

At CNY 6.33 MM has Grown at 20.62%

RAW MATERIAL COST(Y)

Grown by 29.25% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.44 times

Here's what is working for Sinosteel Engineering & Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 3,590.15 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Operating Profit

Highest at CNY 322.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 266.38 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 217.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.15

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 19,994.72 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

At CNY 18.5 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CNY MM)

Here's what is not working for Sinosteel Engineering & Technology Co., Ltd.

Interest

At CNY 6.33 MM has Grown at 20.62%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 1.6 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Inventory Turnover Ratio

Lowest at 8.44 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 29.25% (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

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