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Sobute New Materials Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Building Products
  • ISIN: CNE100002TT1
  • SHG: 603916
CNY
10.79
-0.18 (-1.64%)

Sep 22

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Sobute New Materials Co., Ltd.

Why is Sobute New Materials Co., Ltd. ?

1
Poor Management Efficiency with a low ROCE of 9.08%
  • The company has been able to generate a Return on Capital Employed (avg) of 9.08% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of -2.20% and Operating profit at -18.76% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 9.36% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -2.20% and Operating profit at -18.76% over the last 5 years
4
Flat results in Jun 26
  • INTEREST(HY) At CNY 35.37 MM has Grown at 13.78%
5
With ROE of 4.43%, it has a expensive valuation with a 1.45 Price to Book Value
  • Over the past year, while the stock has generated a return of 2.33%, its profits have risen by 6% ; the PEG ratio of the company is 5.5
  • At the current price, the company has a high dividend yield of 0.8
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Sobute New Materials Co., Ltd. should be less than 10%
  2. Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is Sobute New Materials Co., Ltd. for you?

High Risk, High Return

Absolute
Risk Adjusted
Volatility
Sobute New Materials Co., Ltd.
1.22%
0.89
53.76%
China Shanghai Composite
3.23%
0.23
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
-2.20%
EBIT Growth (5y)
-18.76%
EBIT to Interest (avg)
5.56
Debt to EBITDA (avg)
1.66
Net Debt to Equity (avg)
0.20
Sales to Capital Employed (avg)
0.53
Tax Ratio
12.02%
Dividend Payout Ratio
41.38%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.66%
ROE (avg)
9.36%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
33
Industry P/E
Price to Book Value
1.45
EV to EBIT
29.97
EV to EBITDA
16.79
EV to Capital Employed
1.39
EV to Sales
1.95
PEG Ratio
5.50
Dividend Yield
0.80%
ROCE (Latest)
4.65%
ROE (Latest)
4.43%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company
ROCE(HY)

Highest at 3.05%

DEBT-EQUITY RATIO (HY)

Lowest at 18.99 %

INTEREST COVERAGE RATIO(Q)

Highest at 765.15

RAW MATERIAL COST(Y)

Fallen by -4.69% (YoY

NET PROFIT(9M)

Higher at CNY 117.92 MM

CASH AND EQV(HY)

Highest at CNY 3,730.73 MM

PRE-TAX PROFIT(Q)

Highest at CNY 66.63 MM

EPS(Q)

Highest at CNY 0.1

-6What is not working for the Company
INTEREST(HY)

At CNY 35.37 MM has Grown at 13.78%

Here's what is working for Sobute New Materials Co., Ltd.

Interest Coverage Ratio
Highest at 765.15
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio
Lowest at 18.99 % and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Pre-Tax Profit
Highest at CNY 66.63 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

EPS
Highest at CNY 0.1
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv
Highest at CNY 3,730.73 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Net Profit
Higher at CNY 117.92 MM
than preceding 12 month period ended Jun 2026
MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost
Fallen by -4.69% (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 Sobute New Materials Co., Ltd.

Interest
At CNY 35.37 MM has Grown at 13.78%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

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