Suncha Technology Co., Ltd. () 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

Suncha Technology Co., Ltd.

Why is Suncha Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.34%

The company has been able to generate a Return on Capital Employed (avg) of 4.34% 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 18.05% and Operating profit at -28.92% 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 4.09% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 18.05% and Operating profit at -28.92% over the last 5 years

DEBT-EQUITY RATIO (HY) Highest at 59.28 %
INTEREST(Q) At CNY 6.37 MM has Grown at 39.01%
INTEREST COVERAGE RATIO(Q) Lowest at 179.84

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 Paper, Forest & Jute Products)

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

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.05%

EBIT Growth (5y)

-28.92%

EBIT to Interest (avg)

2.41

Debt to EBITDA (avg)

5.72

Net Debt to Equity (avg)

0.59

Sales to Capital Employed (avg)

0.85

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

52.77%

Pledged Shares

Institutional Holding

ROCE (avg)

4.34%

ROE (avg)

4.09%

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

1.05

EV to EBIT

100.89

EV to EBITDA

20.03

EV to Capital Employed

1.03

EV to Sales

1.02

PEG Ratio

0.47

Dividend Yield

0.90%

ROCE (Latest)

1.02%

ROE (Latest)

2.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

21What is working for the Company

NET PROFIT(HY)

At CNY 23.66 MM has Grown at 106,802.09%

OPERATING CASH FLOW(Y)

Highest at CNY 82.74 MM

NET SALES(HY)

At CNY 768.72 MM has Grown at 21.15%

ROCE(HY)

Highest at 3.09%

RAW MATERIAL COST(Y)

Fallen by -8.12% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.63%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.91%

-16What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 59.28 %

INTEREST(Q)

At CNY 6.37 MM has Grown at 39.01%

INTEREST COVERAGE RATIO(Q)

Lowest at 179.84

OPERATING PROFIT(Q)

Lowest at CNY 11.45 MM

Here's what is working for Suncha Technology Co., Ltd.

Net Profit

At CNY 23.66 MM has Grown at 106,802.09%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 768.72 MM has Grown at 21.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Higher at CNY 23.66 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 82.74 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 3.63%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.91%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -8.12% (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 Suncha Technology Co., Ltd.

Interest

At CNY 6.37 MM has Grown at 39.01%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 179.84

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 11.45 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Debt-Equity Ratio

Highest at 59.28 % and Grown

In each half year 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

Interest

Highest at CNY 6.37 MM

in the last five periods and Increased by 39.01% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)