Sunwave Communications Co., Ltd. (002115) 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

Sunwave Communications Co., Ltd.

Why is Sunwave Communications Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.49%

The company has been able to generate a Return on Capital Employed (avg) of 2.49% 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 3.17% and Operating profit at -224.92% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

INTEREST(HY) At CNY 10.85 MM has Grown at 32.31%
OPERATING CASH FLOW(Y) Lowest at CNY -145.39 MM
NET SALES(HY) At CNY 4,955.97 MM has Grown at -13.08%

With ROE of -0.78%, it has a risky valuation with a 4.15 Price to Book Value

Over the past year, while the stock has generated a return of 101.05%, its profits have fallen by -300.7%

Consistent Returns over the last 3 years

Along with generating 101.05% 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 Sunwave Communications Co., Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Sunwave Communications Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sunwave Communications Co., Ltd.

87.26%

3.35

62.77%

China Shanghai Composite

24.7%

1.93

12.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.17%

EBIT Growth (5y)

-224.92%

EBIT to Interest (avg)

-0.57

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

3.89

Tax Ratio

10.19%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.49%

ROE (avg)

2.81%

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

4.15

EV to EBIT

-33.11

EV to EBITDA

-78.82

EV to Capital Employed

5.04

EV to Sales

0.86

PEG Ratio

Dividend Yield

ROCE (Latest)

-15.23%

ROE (Latest)

-0.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly 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

18What is working for the Company

PRE-TAX PROFIT(Q)

Highest at CNY 19.29 MM

RAW MATERIAL COST(Y)

Fallen by -5.69% (YoY

NET SALES(Q)

Highest at CNY 2,837.87 MM

NET PROFIT(Q)

At CNY 0.2 MM has Grown at 102.42%

-14What is not working for the Company

INTEREST(HY)

At CNY 10.85 MM has Grown at 32.31%

OPERATING CASH FLOW(Y)

Lowest at CNY -145.39 MM

NET SALES(HY)

At CNY 4,955.97 MM has Grown at -13.08%

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.98 times

Here's what is working for Sunwave Communications Co., Ltd.

Pre-Tax Profit

At CNY 19.29 MM has Grown at 1,739.17%

over average net sales of the previous four periods of CNY 1.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 19.29 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

Highest at CNY 2,837.87 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 2,837.87 MM has Grown at 19.73%

over average net sales of the previous four periods of CNY 2,370.24 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 0.2 MM has Grown at 102.42%

over average net sales of the previous four periods of CNY -8.27 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -5.69% (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 Sunwave Communications Co., Ltd.

Interest

At CNY 10.85 MM has Grown at 32.31%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -145.39 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Lowest at 9.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio