Spring Airlines Co., Ltd. (601021) 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

Spring Airlines Co., Ltd.

Why is Spring Airlines Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.97%

The company has been able to generate a Return on Capital Employed (avg) of 2.97% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 19.25% and Operating profit at 29.12% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.70% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 19.25% and Operating profit at 29.12% over the last 5 years

Flat results in Jun 26

PRE-TAX PROFIT(Q) At CNY 70.77 MM has Fallen at -91.75%
NET PROFIT(Q) At CNY 59.44 MM has Fallen at -90.93%
RAW MATERIAL COST(Y) Grown by 99.51% (YoY)

With ROE of 14.07%, it has a expensive valuation with a 2.48 Price to Book Value

Over the past year, while the stock has generated a return of -22.53%, its profits have risen by 23.3% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 2.6

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 Airline)

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

Is Spring Airlines Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Spring Airlines Co., Ltd.

-21.6%

-0.92

29.52%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.25%

EBIT Growth (5y)

29.12%

EBIT to Interest (avg)

1.19

Debt to EBITDA (avg)

4.54

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

0.55

Tax Ratio

23.56%

Dividend Payout Ratio

40.30%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

4.56%

ROE (avg)

5.70%

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

2.48

EV to EBIT

23.81

EV to EBITDA

12.21

EV to Capital Employed

1.89

EV to Sales

2.65

PEG Ratio

0.76

Dividend Yield

2.64%

ROCE (Latest)

7.92%

ROE (Latest)

14.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 7,530.86 MM

NET SALES(HY)

At CNY 12,336.15 MM has Grown at 19.72%

DIVIDEND PAYOUT RATIO(Y)

Highest at 528%

-10What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 70.77 MM has Fallen at -91.75%

NET PROFIT(Q)

At CNY 59.44 MM has Fallen at -90.93%

RAW MATERIAL COST(Y)

Grown by 99.51% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 98.17 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 27.42 times

INTEREST(Q)

Highest at CNY 133.75 MM

Here's what is working for Spring Airlines Co., Ltd.

Net Sales

At CNY 12,336.15 MM has Grown at 19.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 7,530.86 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Dividend Payout Ratio

Highest at 528%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Spring Airlines Co., Ltd.

Pre-Tax Profit

At CNY 70.77 MM has Fallen at -91.75%

over average net sales of the previous four periods of CNY 857.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 59.44 MM has Fallen at -90.93%

over average net sales of the previous four periods of CNY 655.7 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

Highest at CNY 133.75 MM

in the last five periods and Increased by 7.28% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 98.17 %

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 27.42 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 99.51% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at CNY 4.76 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income