Snowsky Salt Industry Group Co., Ltd. (600929) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Snowsky Salt Industry Group Co., Ltd.

Why is Snowsky Salt Industry Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 16.52% and Operating profit at -25.43% over the last 5 years

With a fall in Net Sales of -21.75%, the company declared Very Negative results in Jun 25

The company has declared negative results for the last 5 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY 494.91 MM
NET SALES(Q) At CNY 1,113.18 MM has Fallen at -21.75%
PRE-TAX PROFIT(Q) At CNY 52.06 MM has Fallen at -67.91%

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 1.84%, its profits have fallen by -91.6%
At the current price, the company has a high dividend yield of 1.5

Underperformed the market in the last 1 year

The stock has generated a return of 1.84% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%

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 FMCG)

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

Is Snowsky Salt Industry Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Snowsky Salt Industry Group Co., Ltd.

1.84%

0.29

23.03%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.52%

EBIT Growth (5y)

-25.43%

EBIT to Interest (avg)

21.44

Debt to EBITDA (avg)

0.34

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

0.68

Tax Ratio

24.86%

Dividend Payout Ratio

46.57%

Pledged Shares

Institutional Holding

ROCE (avg)

7.45%

ROE (avg)

7.49%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

159

Industry P/E

Price to Book Value

1.26

EV to EBIT

246.66

EV to EBITDA

14.87

EV to Capital Employed

1.27

EV to Sales

2.03

PEG Ratio

Dividend Yield

1.50%

ROCE (Latest)

0.52%

ROE (Latest)

0.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-39What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 494.91 MM

NET SALES(Q)

At CNY 1,113.18 MM has Fallen at -21.75%

PRE-TAX PROFIT(Q)

At CNY 52.06 MM has Fallen at -67.91%

NET PROFIT(Q)

At CNY 43.67 MM has Fallen at -69.26%

ROCE(HY)

Lowest at 0.59%

INTEREST(Q)

At CNY 6.52 MM has Grown at 15.38%

RAW MATERIAL COST(Y)

Grown by 18.14% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -4.8 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.99%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.51%

Here's what is not working for Snowsky Salt Industry Group Co., Ltd.

Net Sales

At CNY 1,113.18 MM has Fallen at -21.75%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 52.06 MM has Fallen at -67.91%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 43.67 MM has Fallen at -69.26%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 494.91 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)

Interest

At CNY 6.52 MM has Grown at 15.38%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -4.8 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 8.99%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.51%

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 18.14% (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