SKSHU Paint Co., Ltd. (603737) 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

SKSHU Paint Co., Ltd.

Why is SKSHU Paint Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 11.64% and Operating profit at 2.15% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 12.91% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.64% and Operating profit at 2.15% over the last 5 years

Positive results in Sep 25

DIVIDEND PAYOUT RATIO(Y) Highest at 119.88%
RAW MATERIAL COST(Y) Fallen by -25.75% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 116.31 %

With ROE of 18.38%, it has a expensive valuation with a 11.62 Price to Book Value

Over the past year, while the stock has generated a return of 40.86%, its profits have risen by 681.7% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.5

Market Beating Performance

The stock has generated a return of 40.86% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SKSHU Paint 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 SKSHU Paint Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

SKSHU Paint Co., Ltd.

32.46%

1.44

48.43%

China Shanghai Composite

13.33%

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)

11.64%

EBIT Growth (5y)

2.15%

EBIT to Interest (avg)

1.61

Debt to EBITDA (avg)

6.07

Net Debt to Equity (avg)

1.65

Sales to Capital Employed (avg)

1.38

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

36.29%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

5.17%

ROE (avg)

12.91%

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

11.62

EV to EBIT

72.71

EV to EBITDA

37.23

EV to Capital Employed

5.27

EV to Sales

3.20

PEG Ratio

0.14

Dividend Yield

0.46%

ROCE (Latest)

7.25%

ROE (Latest)

18.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

14What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 119.88%

RAW MATERIAL COST(Y)

Fallen by -25.75% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 116.31 %

DIVIDEND PER SHARE(HY)

Highest at CNY 2.76

PRE-TAX PROFIT(Q)

At CNY 375.43 MM has Grown at 60.27%

NET PROFIT(Q)

At CNY 307.66 MM has Grown at 53.65%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for SKSHU Paint Co., Ltd.

Pre-Tax Profit

At CNY 375.43 MM has Grown at 60.27%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 307.66 MM has Grown at 53.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 116.31 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at CNY 2.76

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 119.88%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -25.75% (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