Sumec Corp., Ltd. (600710) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sumec Corp., Ltd.

Why is Sumec Corp., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.75% and Operating profit at 14.13% over the last 5 years

Flat results in Jun 25

ROCE(HY) Lowest at 10.63%
RAW MATERIAL COST(Y) Grown by 118.28% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 0%

With ROE of 44.54%, it has a very attractive valuation with a 1.63 Price to Book Value

Over the past year, while the stock has generated a return of 18.53%, its profits have risen by 7.3% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 3.8

Consistent Returns over the last 3 years

Along with generating 18.53% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sumec Corp., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Sumec Corp., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Sumec Corp., Ltd.

18.53%

0.61

38.03%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.75%

EBIT Growth (5y)

14.13%

EBIT to Interest (avg)

10.63

Debt to EBITDA (avg)

0.83

Net Debt to Equity (avg)

-0.55

Sales to Capital Employed (avg)

6.60

Tax Ratio

21.93%

Dividend Payout Ratio

41.99%

Pledged Shares

Institutional Holding

ROCE (avg)

55.57%

ROE (avg)

42.19%

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

1.63

EV to EBIT

2.98

EV to EBITDA

2.17

EV to Capital Employed

1.68

EV to Sales

0.10

PEG Ratio

0.50

Dividend Yield

3.80%

ROCE (Latest)

56.35%

ROE (Latest)

44.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

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

3What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

PRE-TAX PROFIT(Q)

Highest at CNY 1,269.28 MM

-18What is not working for the Company

ROCE(HY)

Lowest at 10.63%

RAW MATERIAL COST(Y)

Grown by 118.28% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0%

NET PROFIT(Q)

Lowest at CNY -87.18 MM

EPS(Q)

Lowest at CNY 0

Here's what is working for Sumec Corp., Ltd.

Pre-Tax Profit

Highest at CNY 1,269.28 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Here's what is not working for Sumec Corp., Ltd.

Net Profit

At CNY -87.18 MM has Fallen at -128.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Profit

Lowest at CNY -87.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0%

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 118.28% (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