Sokan New Materials Group Co., Ltd. (688157) 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

Sokan New Materials Group Co., Ltd.

Why is Sokan New Materials Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.93% and Operating profit at -27.78% over the last 5 years

With a fall in PBT of -50.55%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 2 consecutive quarters
NET SALES(Q) At CNY 150.74 MM has Fallen at -18.26%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.54%
INTEREST(Q) Highest at CNY 1.18 MM

With ROE of 4.57%, it has a very expensive valuation with a 4.42 Price to Book Value

Over the past year, while the stock has generated a return of 1.03%, its profits have fallen by -35.6%

Underperformed the market in the last 1 year

The stock has generated a return of 1.03% 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 Other Industrial Products)

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

Is Sokan New Materials Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sokan New Materials Group Co., Ltd.

1.03%

0.05

54.48%

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)

9.93%

EBIT Growth (5y)

-27.78%

EBIT to Interest (avg)

87.43

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

0.44

Tax Ratio

5.32%

Dividend Payout Ratio

21.38%

Pledged Shares

Institutional Holding

ROCE (avg)

12.88%

ROE (avg)

6.84%

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

4.42

EV to EBIT

110.26

EV to EBITDA

52.05

EV to Capital Employed

4.42

EV to Sales

7.62

PEG Ratio

Dividend Yield

0.32%

ROCE (Latest)

4.01%

ROE (Latest)

4.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 205.13 MM

NET SALES(HY)

At CNY 366.83 MM has Grown at 19.15%

-33What is not working for the Company

NET SALES(Q)

At CNY 150.74 MM has Fallen at -18.26%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.54%

INTEREST(Q)

Highest at CNY 1.18 MM

OPERATING PROFIT(Q)

Lowest at CNY 0.74 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.49 %

PRE-TAX PROFIT(Q)

Lowest at CNY 3.64 MM

NET PROFIT(Q)

Lowest at CNY 3.75 MM

EPS(Q)

Lowest at CNY 0.02

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

Operating Cash Flow

Highest at CNY 205.13 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Sokan New Materials Group Co., Ltd.

Net Sales

At CNY 150.74 MM has Fallen at -18.26%

over average net sales of the previous four periods of CNY 184.41 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 3.64 MM has Fallen at -84.23%

over average net sales of the previous four periods of CNY 23.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 3.75 MM has Fallen at -82.64%

over average net sales of the previous four periods of CNY 21.59 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1.18 MM has Grown at 26.19%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 1.18 MM

in the last five periods and Increased by 26.19% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 0.74 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.49 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 3.64 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 3.75 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 3.54%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio