Songz Automobile Air Conditioning Co., Ltd. (002454) 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

Songz Automobile Air Conditioning Co., Ltd.

Why is Songz Automobile Air Conditioning Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.45%

The company has been able to generate a Return on Capital Employed (avg) of 3.45% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 8.16% and Operating profit at 4.15% over the last 5 years

Flat results in Mar 26

INTEREST(9M) At CNY 1.76 MM has Grown at 27.5%
INTEREST COVERAGE RATIO(Q) Lowest at 9,203.09
NET SALES(Q) Lowest at CNY 1,195.4 MM

With ROE of 6.50%, it has a fair valuation with a 1.22 Price to Book Value

Over the past year, while the stock has generated a return of 1.89%, its profits have risen by 39.5% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 4

Underperformed the market in the last 1 year

The stock has generated a return of 1.89% in the last 1 year, much lower than market (China Shanghai Composite) returns of 23.91%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Songz Automobile Air Conditioning Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Songz Automobile Air Conditioning Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Songz Automobile Air Conditioning Co., Ltd.

0.85%

-0.17

47.50%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.16%

EBIT Growth (5y)

4.15%

EBIT to Interest (avg)

32.74

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.95

Tax Ratio

8.83%

Dividend Payout Ratio

63.28%

Pledged Shares

Institutional Holding

ROCE (avg)

3.45%

ROE (avg)

4.78%

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

1.22

EV to EBIT

16.02

EV to EBITDA

11.59

EV to Capital Employed

1.27

EV to Sales

0.75

PEG Ratio

0.48

Dividend Yield

4.04%

ROCE (Latest)

7.93%

ROE (Latest)

6.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 669.88 MM

ROCE(HY)

Highest at 5.58%

RAW MATERIAL COST(Y)

Fallen by -5.8% (YoY

CASH AND EQV(HY)

Highest at CNY 5,069.19 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.3 times

-10What is not working for the Company

INTEREST(9M)

At CNY 1.76 MM has Grown at 27.5%

INTEREST COVERAGE RATIO(Q)

Lowest at 9,203.09

NET SALES(Q)

Lowest at CNY 1,195.4 MM

OPERATING PROFIT(Q)

Lowest at CNY 82.96 MM

Here's what is working for Songz Automobile Air Conditioning Co., Ltd.

Operating Cash Flow

Highest at CNY 669.88 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)

Cash and Eqv

Highest at CNY 5,069.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 5.3 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -5.8% (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 Songz Automobile Air Conditioning Co., Ltd.

Interest

At CNY 1.76 MM has Grown at 27.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 1,195.4 MM has Fallen at -15.03%

over average net sales of the previous four periods of CNY 1,406.91 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 9,203.09

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 1,195.4 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 82.96 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)