Suzhou Mingzhi Technology 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 Mingzhi Technology Co., Ltd.

Why is Suzhou Mingzhi Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.78%

The company has been able to generate a Return on Capital Employed (avg) of 5.78% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -7.11% and Operating profit at -27.65% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.45% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -7.11% and Operating profit at -27.65% over the last 5 years

With a fall in Net Sales of -31.17%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 2 consecutive quarters
PRE-TAX PROFIT(Q) At CNY 6.13 MM has Fallen at -80.97%
NET PROFIT(Q) At CNY 7.9 MM has Fallen at -72.96%
INTEREST COVERAGE RATIO(Q) Lowest at 556.11

With ROE of 4.94%, it has a fair valuation with a 1.82 Price to Book Value

Over the past year, while the stock has generated a return of -12.56%, its profits have fallen by -0.3%
At the current price, the company has a high dividend yield of 0.9

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 Industrial Manufacturing)

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

Is Suzhou Mingzhi Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Suzhou Mingzhi Technology Co., Ltd.

-11.15%

0.59

48.00%

China Shanghai Composite

0.9%

0.22

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.11%

EBIT Growth (5y)

-27.65%

EBIT to Interest (avg)

13.39

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

0.48

Tax Ratio

4.93%

Dividend Payout Ratio

77.24%

Pledged Shares

Institutional Holding

ROCE (avg)

5.14%

ROE (avg)

4.45%

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

1.82

EV to EBIT

74.81

EV to EBITDA

30.90

EV to Capital Employed

1.93

EV to Sales

3.56

PEG Ratio

Dividend Yield

0.86%

ROCE (Latest)

2.57%

ROE (Latest)

4.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 249.02 MM

-30What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 6.13 MM has Fallen at -80.97%

NET PROFIT(Q)

At CNY 7.9 MM has Fallen at -72.96%

INTEREST COVERAGE RATIO(Q)

Lowest at 556.11

RAW MATERIAL COST(Y)

Grown by 17.55% (YoY

CASH AND EQV(HY)

Lowest at CNY 601.54 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.94 times

NET SALES(Q)

Lowest at CNY 91.59 MM

OPERATING PROFIT(Q)

Lowest at CNY 1.39 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.51 %

Here's what is working for Suzhou Mingzhi Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 249.02 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 Suzhou Mingzhi Technology Co., Ltd.

Net Sales

At CNY 91.59 MM has Fallen at -31.17%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 6.13 MM has Fallen at -80.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 7.9 MM has Fallen at -72.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 556.11

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 91.59 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 1.39 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.51 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 601.54 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 1.94 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 17.55% (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

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