SUFA Technology Industry Co., Ltd., CNNC (000777) 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

SUFA Technology Industry Co., Ltd., CNNC

Why is SUFA Technology Industry Co., Ltd., CNNC ?

Poor Management Efficiency with a low ROCE of 1.34%

The company has been able to generate a Return on Capital Employed (avg) of 1.34% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 11.65% and Operating profit at 47.47% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 9.25% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

ROCE(HY) Lowest at 10.42%
INTEREST(Q) At CNY 1.63 MM has Grown at 34.39%
DEBTORS TURNOVER RATIO(HY) Lowest at 1.29 times

With ROE of 10.15%, it has a fair valuation with a 3.26 Price to Book Value

Over the past year, while the stock has generated a return of 19.21%, its profits have risen by 0.7% ; the PEG ratio of the company is 32.1
At the current price, the company has a high dividend yield of 1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SUFA Technology Industry Co., Ltd., CNNC should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is SUFA Technology Industry Co., Ltd., CNNC for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

SUFA Technology Industry Co., Ltd., CNNC

21.67%

0.79

49.65%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.65%

EBIT Growth (5y)

47.47%

EBIT to Interest (avg)

4.96

Debt to EBITDA (avg)

3.75

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.70

Tax Ratio

5.38%

Dividend Payout Ratio

32.44%

Pledged Shares

Institutional Holding

ROCE (avg)

1.34%

ROE (avg)

9.25%

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

3.25

EV to EBIT

139.47

EV to EBITDA

65.42

EV to Capital Employed

2.85

EV to Sales

4.16

PEG Ratio

32.07

Dividend Yield

1.01%

ROCE (Latest)

2.05%

ROE (Latest)

10.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 157.28 MM

RAW MATERIAL COST(Y)

Fallen by -14.47% (YoY

-6What is not working for the Company

ROCE(HY)

Lowest at 10.42%

INTEREST(Q)

At CNY 1.63 MM has Grown at 34.39%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.29 times

PRE-TAX PROFIT(Q)

Fallen at -34.53%

Here's what is working for SUFA Technology Industry Co., Ltd., CNNC

Operating Cash Flow

Highest at CNY 157.28 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -14.47% (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 SUFA Technology Industry Co., Ltd., CNNC

Interest

At CNY 1.63 MM has Grown at 34.39%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

Fallen at -34.53%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 1.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at CNY 1.2 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income