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

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 10.76% and Operating profit at -35.42% over the last 5 years

With a fall in Net Profit of -20.42%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
NET PROFIT(HY) At CNY 21.23 MM has Grown at -64.1%
ROCE(HY) Lowest at 3.03%
INTEREST(Q) At CNY 1.1 MM has Grown at 22.86%

With ROE of 4.57%, it has a very expensive valuation with a 4.39 Price to Book Value

Over the past year, while the stock has generated a return of 26.99%, its profits have fallen by -35.6%

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, Medium Return

Absolute

Risk Adjusted

Volatility

Sokan New Materials Group Co., Ltd.

6.72%

0.49

55.47%

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)

10.76%

EBIT Growth (5y)

-35.42%

EBIT to Interest (avg)

87.43

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

0.46

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

4.39

EV to EBIT

109.66

EV to EBITDA

51.76

EV to Capital Employed

4.40

EV to Sales

7.58

PEG Ratio

Dividend Yield

0.32%

ROCE (Latest)

4.01%

ROE (Latest)

4.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 86.43 MM

RAW MATERIAL COST(Y)

Fallen by 1.17% (YoY

-25What is not working for the Company

NET PROFIT(HY)

At CNY 21.23 MM has Grown at -64.1%

ROCE(HY)

Lowest at 3.03%

INTEREST(Q)

At CNY 1.1 MM has Grown at 22.86%

INTEREST COVERAGE RATIO(Q)

Lowest at 866.79

CASH AND EQV(HY)

Lowest at CNY 339.36 MM

DEBT-EQUITY RATIO (HY)

Highest at 1.9 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.33 times

OPERATING PROFIT(Q)

Lowest at CNY 9.5 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.61 %

PRE-TAX PROFIT(Q)

At CNY 10.27 MM has Fallen at -31.07%

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

Operating Cash Flow

Highest at CNY 86.43 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by 1.17% (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 Sokan New Materials Group Co., Ltd.

Net Profit

At CNY 21.23 MM has Grown at -64.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1.1 MM has Grown at 22.86%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 866.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 9.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.61 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 10.27 MM has Fallen at -31.07%

over average net sales of the previous four periods of CNY 14.89 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 339.36 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 1.9 %

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 3.33 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio