Sunfly Intelligent Technology Co., Ltd. (300423) 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

Sunfly Intelligent Technology Co., Ltd.

Why is Sunfly Intelligent Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.66%

The company has been able to generate a Return on Capital Employed (avg) of 4.66% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -29.78% and Operating profit at -168.52% over the last 5 years

With a fall in Net Sales of -12.71%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 3 consecutive quarters
NET PROFIT(HY) At CNY -159.2 MM has Grown at -211.28%
INVENTORY TURNOVER RATIO(HY) Lowest at 1.27 times
INTEREST(Q) At CNY 1.92 MM has Grown at 85.91%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -6.65%, its profits have fallen by -137.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.65% returns in the last 1 year, the stock has also underperformed China Shanghai Composite 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 Electronics & Appliances)

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

Is Sunfly Intelligent Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sunfly Intelligent Technology Co., Ltd.

-6.82%

-0.03

56.59%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-29.78%

EBIT Growth (5y)

-168.52%

EBIT to Interest (avg)

-19.46

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

0.83

Tax Ratio

11.89%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.66%

ROE (avg)

4.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.64

EV to EBIT

-28.88

EV to EBITDA

-41.02

EV to Capital Employed

2.58

EV to Sales

4.41

PEG Ratio

Dividend Yield

ROCE (Latest)

-8.95%

ROE (Latest)

-10.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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 -8.29 MM

-27What is not working for the Company

NET PROFIT(HY)

At CNY -159.2 MM has Grown at -211.28%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.27 times

INTEREST(Q)

At CNY 1.92 MM has Grown at 85.91%

RAW MATERIAL COST(Y)

Grown by 20.52% (YoY

CASH AND EQV(HY)

Lowest at CNY 232.69 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.75 times

NET SALES(Q)

Lowest at CNY 107.33 MM

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

Operating Cash Flow

Highest at CNY -8.29 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Sunfly Intelligent Technology Co., Ltd.

Net Profit

At CNY -159.2 MM has Grown at -211.28%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 107.33 MM has Fallen at -43.4%

over average net sales of the previous four periods of CNY 189.64 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 1.92 MM has Grown at 85.91%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 1.27 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at CNY 107.33 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 232.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 0.75 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 20.52% (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