Sunstone Development Co., Ltd. (603612) 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

Sunstone Development Co., Ltd.

Why is Sunstone Development Co., Ltd. ?

With a growth in Net Sales of 29.38%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 2 consecutive quarters
NET PROFIT(Q) At CNY 123.07 MM has Grown at 210.81%
ROCE(HY) Highest at 13.01%
PRE-TAX PROFIT(Q) At CNY 203.49 MM has Grown at 143.14%

With ROE of 15.53%, it has a very attractive valuation with a 2.31 Price to Book Value

Over the past year, while the stock has generated a return of 81.42%, its profits have risen by 245% ; the PEG ratio of the company is 0.1

Market Beating performance in long term as well as near term

Along with generating 81.42% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sunstone Development Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Sunstone Development Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sunstone Development Co., Ltd.

13.26%

2.91

49.02%

China Shanghai Composite

23.91%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.89%

EBIT Growth (5y)

16.42%

EBIT to Interest (avg)

3.73

Debt to EBITDA (avg)

3.65

Net Debt to Equity (avg)

1.44

Sales to Capital Employed (avg)

1.07

Tax Ratio

16.28%

Dividend Payout Ratio

21.89%

Pledged Shares

Institutional Holding

ROCE (avg)

8.10%

ROE (avg)

10.08%

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

1.59

EV to EBIT

11.64

EV to EBITDA

8.29

EV to Capital Employed

1.24

EV to Sales

0.95

PEG Ratio

0.16

Dividend Yield

1.21%

ROCE (Latest)

10.68%

ROE (Latest)

16.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

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

6What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 5.01 times

NET SALES(Q)

At CNY 4,723.05 MM has Grown at 26.21%

-7What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 682.44

OPERATING PROFIT MARGIN(Q)

Lowest at 9.18 %

RAW MATERIAL COST(Y)

Grown by 26.89% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.68 times

OPERATING PROFIT(Q)

Lowest at CNY 433.57 MM

Here's what is working for Sunstone Development Co., Ltd.

Net Sales

At CNY 4,723.05 MM has Grown at 26.21%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 5.01 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 Sunstone Development Co., Ltd.

Interest Coverage Ratio

Lowest at 682.44

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 9.18 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 433.57 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 3.68 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 26.89% (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