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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Southwest Securities Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Southwest Securities Co., Ltd.

0.48%

0.87

22.51%

China Shanghai Composite

23.91%

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)

-2.10%

EBIT Growth (5y)

-4.86%

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

60.04%

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

0.98

EV to EBIT

14.73

EV to EBITDA

12.98

EV to Capital Employed

0.98

EV to Sales

5.63

PEG Ratio

0.55

Dividend Yield

2.17%

ROCE (Latest)

6.63%

ROE (Latest)

3.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 13,882.56 MM

NET PROFIT(HY)

At CNY 666.97 MM has Grown at 44.39%

ROCE(HY)

Highest at 4.29%

NET SALES(Q)

At CNY 1,010.02 MM has Grown at 15.93%

-6What is not working for the Company

NET SALES(HY)

At CNY 1,707.23 MM has Grown at -17.44%

CASH AND EQV(HY)

Lowest at CNY 5,047.6 MM

DEBT-EQUITY RATIO (HY)

Highest at 184.36 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.21 times

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

Net Profit

At CNY 666.97 MM has Grown at 44.39%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 13,882.56 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 1,010.02 MM has Grown at 15.93%

over average net sales of the previous four periods of CNY 871.21 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Southwest Securities Co., Ltd.

Cash and Eqv

Lowest at CNY 5,047.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 184.36 %

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 0.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio