Suzhou Longway Electronic Machinery 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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Suzhou Longway Electronic Machinery Co., Ltd.

Why is Suzhou Longway Electronic Machinery Co., Ltd. ?

INTEREST(HY) At CNY 3.71 MM has Grown at 66.12%
INTEREST COVERAGE RATIO(Q) Lowest at 566.73
NET SALES(Q) Fallen at -12.34%

With ROE of 7.99%, it has a very attractive valuation with a 1.21 Price to Book Value

Over the past year, while the stock has generated a return of -16.56%, its profits have risen by 42.3% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0.7

Below par performance in long term as well as near term

Along with generating -16.56% returns in the last 1 year, the stock has also underperformed 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 Suzhou Longway Electronic Machinery 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 Suzhou Longway Electronic Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Suzhou Longway Electronic Machinery Co., Ltd.

-15.88%

0.70

44.87%

China Shanghai Composite

16.01%

1.03

14.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.44%

EBIT Growth (5y)

-0.65%

EBIT to Interest (avg)

16.86

Debt to EBITDA (avg)

0.33

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

0.74

Tax Ratio

9.29%

Dividend Payout Ratio

74.77%

Pledged Shares

Institutional Holding

ROCE (avg)

7.34%

ROE (avg)

8.88%

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

1.21

EV to EBIT

14.61

EV to EBITDA

9.20

EV to Capital Employed

1.25

EV to Sales

0.96

PEG Ratio

0.36

Dividend Yield

0.66%

ROCE (Latest)

8.53%

ROE (Latest)

7.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 175.99 MM

RAW MATERIAL COST(Y)

Fallen by -1.69% (YoY

-20What is not working for the Company

INTEREST(HY)

At CNY 3.71 MM has Grown at 66.12%

INTEREST COVERAGE RATIO(Q)

Lowest at 566.73

NET SALES(Q)

Fallen at -12.34%

OPERATING PROFIT(Q)

Lowest at CNY 9.56 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.2 %

PRE-TAX PROFIT(Q)

Lowest at CNY 13.18 MM

NET PROFIT(Q)

Lowest at CNY 12.01 MM

EPS(Q)

Lowest at CNY 0.09

Here's what is working for Suzhou Longway Electronic Machinery Co., Ltd.

Operating Cash Flow

Highest at CNY 175.99 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)

Raw Material Cost

Fallen by -1.69% (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 Suzhou Longway Electronic Machinery Co., Ltd.

Interest

At CNY 3.71 MM has Grown at 66.12%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 566.73

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Fallen at -12.34%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 9.56 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.2 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 13.18 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -35.44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 12.01 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

Fallen at -32.97%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Non Operating Income

Highest at CNY 0.4 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income