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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Suzhou Longway Electronic Machinery Co., Ltd.

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

INTEREST COVERAGE RATIO(Q) Lowest at 963.84
INTEREST(Q) Highest at CNY 1.6 MM
OPERATING PROFIT(Q) Lowest at CNY 15.42 MM

With ROE of 7.99%, it has a attractive valuation with a 1.22 Price to Book Value

Over the past year, while the stock has generated a return of 20.50%, 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

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.

12.67%

0.74

63.75%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.39%

EBIT Growth (5y)

15.07%

EBIT to Interest (avg)

16.86

Debt to EBITDA (avg)

0.33

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

0.85

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

1.22

EV to EBIT

14.73

EV to EBITDA

9.27

EV to Capital Employed

1.26

EV to Sales

0.97

PEG Ratio

0.36

Dividend Yield

0.65%

ROCE (Latest)

8.53%

ROE (Latest)

7.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

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

23What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 120.5 MM

NET PROFIT(HY)

At CNY 56.02 MM has Grown at 99.06%

NET SALES(HY)

At CNY 637.49 MM has Grown at 34.92%

ROCE(HY)

Highest at 8.39%

RAW MATERIAL COST(Y)

Fallen by -12.82% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.12%

PRE-TAX PROFIT(Q)

At CNY 22.67 MM has Grown at 99.37%

-12What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 963.84

INTEREST(Q)

Highest at CNY 1.6 MM

OPERATING PROFIT(Q)

Lowest at CNY 15.42 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.23 %

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

Operating Cash Flow

Highest at CNY 120.5 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)

Net Profit

At CNY 20.39 MM has Grown at 110.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 247.41 MM has Grown at 21.63%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 22.67 MM has Grown at 99.37%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Highest at 4.12%

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 -12.82% (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 1.6 MM has Grown at 26.19%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 963.84

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 1.6 MM

in the last five periods and Increased by 26.19% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 15.42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at CNY 0.39 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income