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.

-3.21%

0.59

41.47%

China Shanghai Composite

16.67%

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)

0.53

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

41.43%

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

5.27

EV to EBIT

136.11

EV to EBITDA

101.54

EV to Capital Employed

11.75

EV to Sales

6.73

PEG Ratio

Dividend Yield

ROCE (Latest)

8.63%

ROE (Latest)

5.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

13What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 5.11 times

NET SALES(Q)

Highest at CNY 910.26 MM

NET PROFIT(Q)

Highest at CNY 66.97 MM

EPS(Q)

Highest at CNY 0.16

-21What is not working for the Company

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%

ROCE(HY)

Lowest at 5.69%

DEBT-EQUITY RATIO (HY)

Highest at -46.39 %

INTEREST COVERAGE RATIO(Q)

Lowest at 16,555.04

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

Net Sales

Highest at CNY 910.26 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 5.11 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

At CNY 910.26 MM has Grown at 40.26%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 66.97 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Southchip Semiconductor Technology (Shanghai) Co., Ltd.

Interest

At CNY 0.6 MM has Grown at 168.53%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 16,555.04

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -46.39 % and Grown

In each half year 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

Operating Cash Flow

Lowest at CNY -65.43 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)