Sun Art Retail Group Ltd. (6808) 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

MINISO Group Holding Ltd.

Chow Sang Sang Holdings International Ltd.

Luk Fook Holdings (International) Ltd.

China MeiDong Auto Holdings Ltd.

Sun Art Retail Group Ltd.

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Sa Sa International Holdings Ltd.

Zhongsheng Group Holdings Ltd.

CK Hutchison Holdings Ltd.

Star Plus Legend Holdings Ltd.

China Yongda Automobiles Services Holdings Ltd.

Why is Sun Art Retail Group Ltd. ?

Weak Long Term Fundamental Strength with a -46.95% CAGR growth in Operating Profits over the last 5 years

High Debt Company with a Debt to Equity ratio (avg) at times
OPERATING CASH FLOW(Y) Lowest at HKD 3,411.53 MM
NET PROFIT(Q) At HKD -174.8 MM has Fallen at -177.44%
RAW MATERIAL COST(Y) Grown by 18.2% (YoY)

With ROE of 2.03%, it has a Expensive valuation with a 0.90 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -21.61%, its profits have risen by 225.2% ; the PEG ratio of the company is 0.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.61% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

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 Retailing)

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

Is Sun Art Retail Group Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sun Art Retail Group Ltd.

-100.0%

1.25

40.51%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.69%

EBIT Growth (5y)

-46.95%

EBIT to Interest (avg)

0.96

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.82

Sales to Capital Employed (avg)

3.21

Tax Ratio

62.50%

Dividend Payout Ratio

742.36%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

10.93%

ROE (avg)

3.26%

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

0.90

EV to EBIT

3.34

EV to EBITDA

0.42

EV to Capital Employed

0.42

EV to Sales

0.02

PEG Ratio

0.20

Dividend Yield

0.30%

ROCE (Latest)

12.65%

ROE (Latest)

2.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 45.94 times

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 3,411.53 MM

NET PROFIT(Q)

At HKD -174.8 MM has Fallen at -177.44%

RAW MATERIAL COST(Y)

Grown by 18.2% (YoY

CASH AND EQV(HY)

Lowest at HKD 20,176.61 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.67 times

NET SALES(Q)

Lowest at HKD 33,123.27 MM

PRE-TAX PROFIT(Q)

Fallen at -69.58%

Here's what is working for Sun Art Retail Group Ltd.

Debtors Turnover Ratio

Highest at 45.94 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Sun Art Retail Group Ltd.

Operating Cash Flow

Lowest at HKD 3,411.53 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Net Profit

At HKD -174.8 MM has Fallen at -177.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (HKD MM)

Net Sales

Lowest at HKD 33,123.27 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Pre-Tax Profit

Fallen at -69.58%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Cash and Eqv

Lowest at HKD 20,176.61 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 6.67 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 18.2% (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 HKD 5.4 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income