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Southwest Securities Co., Ltd.

  • Market Cap: Large Cap
  • Industry: Capital Markets
  • ISIN: CNE0000016P6
  • SHG: 600369
CNY
3.99
0.01 (0.25%)

Sep 22

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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. ?

1
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 -2.10% and Operating profit at -4.86%
  • The company has been able to generate a Return on Equity (avg) of 3.01% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -2.10% and Operating profit at -4.86%
3
Flat results in Jun 26
  • NET SALES(9M) At CNY 2,561.67 MM has Grown at -9.9%
  • DEBT-EQUITY RATIO (HY) Highest at 206.46 %
  • DEBTORS TURNOVER RATIO(HY) Lowest at 0.2 times
4
With ROE of 3.99%, it has a fair valuation with a 1.00 Price to Book Value
  • Over the past year, while the stock has generated a return of -15.86%, its profits have risen by 52% ; the PEG ratio of the company is 0.6
  • At the current price, the company has a high dividend yield of 2.1
5
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -15.86% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Southwest Securities Co., Ltd. should be less than 10%
  2. 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.
-15.64%
0.32
22.64%
China Shanghai Composite
3.23%
0.23
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
-2.10%
EBIT Growth (5y)
-4.86%
EBIT to Interest (avg)
1.54
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
9.71%
Dividend Payout Ratio
60.04%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.71%
ROE (avg)
3.01%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
1.00
EV to EBIT
15.11
EV to EBITDA
13.32
EV to Capital Employed
1.00
EV to Sales
5.78
PEG Ratio
0.57
Dividend Yield
2.12%
ROCE (Latest)
6.63%
ROE (Latest)
3.99%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company
ROCE(HY)

Highest at 4.79%

RAW MATERIAL COST(Y)

Fallen by 0.23% (YoY

NET PROFIT(9M)

Higher at CNY 961.16 MM

DIVIDEND PER SHARE(HY)

Highest at CNY 0.2

PRE-TAX PROFIT(Q)

Highest at CNY 298.74 MM

-4What is not working for the Company
NET SALES(9M)

At CNY 2,561.67 MM has Grown at -9.9%

DEBT-EQUITY RATIO (HY)

Highest at 206.46 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.2 times

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

Net Profit
At CNY 961.16 MM has Grown at 50.29%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CNY MM)

Pre-Tax Profit
Highest at CNY 298.74 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Dividend per share
Highest at CNY 0.2
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (CNY)

Net Profit
Higher at CNY 961.16 MM
than preceding 12 month period ended Jun 2026
MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost
Fallen by 0.23% (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.

Net Sales
At CNY 2,561.67 MM has Grown at -9.9%
Year on Year (YoY)
MOJO Watch
Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio
Highest at 206.46 %
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

Debtors Turnover Ratio
Lowest at 0.2 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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