Southchip Semiconductor Technology (Shanghai) Co., Ltd. () 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

Southchip Semiconductor Technology (Shanghai) Co., Ltd.

Why is Southchip Semiconductor Technology (Shanghai) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 18.26%

The company has been able to generate a Return on Capital Employed (avg) of 18.26% 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 28.01% and Operating profit at -49.04% over the last 5 years

Negative results in Sep 25

INTEREST(HY) At CNY 0.6 MM has Grown at 168.53%
OPERATING CASH FLOW(Y) Lowest at CNY -65.43 MM
NET PROFIT(HY) At CNY 125.89 MM has Grown at -26.48%

With ROE of 5.51%, it has a fair valuation with a 5.27 Price to Book Value

Over the past year, while the stock has generated a return of 1.40%, its profits have fallen by -39.8%

Underperformed the market in the last 1 year

The stock has generated a return of 1.40% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Southchip Semiconductor Technology (Shanghai) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

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

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

Is Southchip Semiconductor Technology (Shanghai) Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Southchip Semiconductor Technology (Shanghai) Co., Ltd.

37.27%

0.59

41.47%

China Shanghai Composite

20.36%

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)

28.01%

EBIT Growth (5y)

-49.04%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

0.57

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

44.63%

Pledged Shares

Institutional Holding

ROCE (avg)

18.26%

ROE (avg)

7.05%

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

4.07

EV to EBIT

100.43

EV to EBITDA

80.64

EV to Capital Employed

6.79

EV to Sales

4.83

PEG Ratio

Dividend Yield

ROCE (Latest)

6.76%

ROE (Latest)

5.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.16% (YoY

NET SALES(Q)

At CNY 880.13 MM has Grown at 31.73%

PRE-TAX PROFIT(Q)

At CNY 48.26 MM has Grown at 58.23%

-14What is not working for the Company

INTEREST(HY)

At CNY 0.95 MM has Grown at 345.3%

OPERATING CASH FLOW(Y)

Lowest at CNY -57.77 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 9,038.16

DEBT-EQUITY RATIO (HY)

Highest at -43.19 %

Here's what is working for Southchip Semiconductor Technology (Shanghai) Co., Ltd.

Net Sales

At CNY 880.13 MM has Grown at 31.73%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 48.26 MM has Grown at 58.23%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -5.16% (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 Southchip Semiconductor Technology (Shanghai) Co., Ltd.

Interest

At CNY 0.95 MM has Grown at 345.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 9,038.16

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY -57.77 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -43.19 %

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