Why is Songcheng Performance Development Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 7.44%
- The company has been able to generate a Return on Capital Employed (avg) of 7.44% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 9.43% and Operating profit at 11.31% over the last 5 years
3
The company has declared Positive results for the last 5 consecutive quarters
- NET PROFIT(HY) Higher at CNY 283.13 MM
- ROCE(HY) Highest at 13.14%
- DEBT-EQUITY RATIO (HY) Lowest at -46.22 %
4
With ROE of 11.50%, it has a fair valuation with a 2.55 Price to Book Value
- Over the past year, while the stock has generated a return of -19.53%, its profits have risen by 500% ; the PEG ratio of the company is 0
- At the current price, the company has a high dividend yield of 2.6
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -19.53% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Songcheng Performance Development Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Media & Entertainment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Songcheng Performance Development Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Songcheng Performance Development Co., Ltd.
-16.84%
-0.62
25.74%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
9.43%
EBIT Growth (5y)
11.31%
EBIT to Interest (avg)
-4.75
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.50
Sales to Capital Employed (avg)
0.24
Tax Ratio
17.53%
Dividend Payout Ratio
49.89%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
7.44%
ROE (avg)
3.43%
Valuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
2.55
EV to EBIT
14.74
EV to EBITDA
10.81
EV to Capital Employed
4.04
EV to Sales
7.25
PEG Ratio
0.04
Dividend Yield
2.56%
ROCE (Latest)
27.41%
ROE (Latest)
11.50%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
18What is working for the Company
NET PROFIT(HY)
Higher at CNY 283.13 MM
ROCE(HY)
Highest at 13.14%
DEBT-EQUITY RATIO
(HY)
Lowest at -46.22 %
INVENTORY TURNOVER RATIO(HY)
Highest at 97.3%
RAW MATERIAL COST(Y)
Fallen by 0.29% (YoY
CASH AND EQV(HY)
Highest at CNY 8,306.07 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Songcheng Performance Development Co., Ltd.
Net Profit
At CNY 283.13 MM has Grown at 143.87%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Net Profit
Higher at CNY 283.13 MM
than preceding 12 month period ended Mar 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Debt-Equity Ratio
Lowest at -46.22 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 97.3% and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Cash and Eqv
Highest at CNY 8,306.07 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by 0.29% (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






