Southwest Securities Co., Ltd. (600369) 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

Southwest Securities Co., Ltd.

Why is Southwest Securities Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 3.01%

Poor long term growth as Net Sales has grown by an annual rate of -2.30% and Operating profit at -9.13%
The company has been able to generate a Return on Equity (avg) of 3.01% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.30% and Operating profit at -9.13%

Positive results in Sep 25

ROCE(HY) Highest at 3.58%
NET SALES(Q) At CNY 1,140.91 MM has Grown at 32.64%
RAW MATERIAL COST(Y) Fallen by -55.66% (YoY)

With ROE of 2.72%, it has a attractive valuation with a 1.08 Price to Book Value

Over the past year, while the stock has generated a return of 1.14%, its profits have risen by 17% ; the PEG ratio of the company is 2.4
At the current price, the company has a high dividend yield of 2

Underperformed the market in the last 1 year

The stock has generated a return of 1.14% 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 Southwest Securities Co., Ltd. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

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

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

Is Southwest Securities Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Southwest Securities Co., Ltd.

-5.42%

0.87

22.51%

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)

-2.30%

EBIT Growth (5y)

-9.13%

EBIT to Interest (avg)

1.39

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

23.54%

Dividend Payout Ratio

80.80%

Pledged Shares

Institutional Holding

ROCE (avg)

7.59%

ROE (avg)

3.01%

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

1.08

EV to EBIT

15.47

EV to EBITDA

13.47

EV to Capital Employed

1.10

EV to Sales

6.01

PEG Ratio

2.36

Dividend Yield

2.03%

ROCE (Latest)

7.13%

ROE (Latest)

2.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

19What is working for the Company

ROCE(HY)

Highest at 3.58%

NET SALES(Q)

At CNY 1,140.91 MM has Grown at 32.64%

RAW MATERIAL COST(Y)

Fallen by -55.66% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 0.27 times

NET PROFIT(Q)

Highest at CNY 282.57 MM

EPS(Q)

Highest at CNY 0.04

-2What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -1,913.72 MM

Here's what is working for Southwest Securities Co., Ltd.

Net Sales

At CNY 1,140.91 MM has Grown at 32.64%

over average net sales of the previous four periods of CNY 860.16 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 282.57 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 0.27 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -55.66% (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 Southwest Securities Co., Ltd.

Operating Cash Flow

Lowest at CNY -1,913.72 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)