Smarter Microelectronics (Guangzhou) Co., Ltd. () 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

Smarter Microelectronics (Guangzhou) Co., Ltd.

Why is Smarter Microelectronics (Guangzhou) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of 19.42% and Operating profit at 6.44% over the last 5 years

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 7.61%, its profits have risen by 23.5%

Underperformed the market in the last 1 year

The stock has generated a return of 7.61% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Other Electrical Equipment)

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

Is Smarter Microelectronics (Guangzhou) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Smarter Microelectronics (Guangzhou) Co., Ltd.

37.57%

0.76

43.30%

China Shanghai Composite

20.36%

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)

19.42%

EBIT Growth (5y)

6.44%

EBIT to Interest (avg)

-298.52

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

0.32

Tax Ratio

19.98%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

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

3.28

EV to EBIT

-16.65

EV to EBITDA

-18.13

EV to Capital Employed

3.95

EV to Sales

7.47

PEG Ratio

Dividend Yield

ROCE (Latest)

-23.74%

ROE (Latest)

-15.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

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

17What is working for the Company

NET PROFIT(HY)

Higher at CNY -178.5 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.66 times

NET SALES(Q)

At CNY 214.7 MM has Grown at 56.87%

RAW MATERIAL COST(Y)

Fallen by -79.4% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -37.4 %

OPERATING PROFIT MARGIN(Q)

Highest at -30.31 %

-19What is not working for the Company

INTEREST(HY)

At CNY 4.19 MM has Grown at 126.24%

OPERATING CASH FLOW(Y)

Lowest at CNY -315.23 MM

PRE-TAX PROFIT(Q)

At CNY -69 MM has Fallen at -8,726.54%

NET PROFIT(Q)

At CNY -69.13 MM has Fallen at -8,914.31%

Here's what is working for Smarter Microelectronics (Guangzhou) Co., Ltd.

Net Sales

At CNY 214.7 MM has Grown at 56.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 1.66 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Profit Margin

Highest at -30.31 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debt-Equity Ratio

Lowest at -37.4 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -79.4% (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 Smarter Microelectronics (Guangzhou) Co., Ltd.

Interest

At CNY 4.19 MM has Grown at 126.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -69 MM has Fallen at -8,726.54%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -69.13 MM has Fallen at -8,914.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -315.23 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)