Suzhou Secote Precision Electronic Co., Ltd. (603283) 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 Secote Precision Electronic Co., Ltd.

Why is Suzhou Secote Precision Electronic Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 17.35%

The company has been able to generate a Return on Capital Employed (avg) of 17.35% 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 10.52% and Operating profit at 25.04% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 19.79% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.52% and Operating profit at 25.04% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 74.31 MM
NET SALES(Q) At CNY 755.56 MM has Fallen at -11.9%
DEBT-EQUITY RATIO (HY) Highest at 27.8 %

With ROE of 14.75%, it has a expensive valuation with a 7.08 Price to Book Value

Over the past year, while the stock has generated a return of 35.41%, its profits have fallen by -2.6%
At the current price, the company has a high dividend yield of 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Suzhou Secote Precision Electronic Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Suzhou Secote Precision Electronic Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Suzhou Secote Precision Electronic Co., Ltd.

31.32%

-0.49

68.77%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.52%

EBIT Growth (5y)

25.04%

EBIT to Interest (avg)

25.87

Debt to EBITDA (avg)

1.36

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

1.04

Tax Ratio

16.22%

Dividend Payout Ratio

23.22%

Pledged Shares

Institutional Holding

ROCE (avg)

17.89%

ROE (avg)

19.79%

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

7.08

EV to EBIT

42.07

EV to EBITDA

38.21

EV to Capital Employed

5.86

EV to Sales

7.62

PEG Ratio

Dividend Yield

0.31%

ROCE (Latest)

13.92%

ROE (Latest)

14.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

3What is working for the Company

NET PROFIT(HY)

At CNY 181.78 MM has Grown at 48.67%

RAW MATERIAL COST(Y)

Fallen by -2.36% (YoY

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 74.31 MM

NET SALES(Q)

At CNY 755.56 MM has Fallen at -11.9%

DEBT-EQUITY RATIO (HY)

Highest at 27.8 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.24 times

PRE-TAX PROFIT(Q)

At CNY 102.61 MM has Fallen at -34.53%

NET PROFIT(Q)

At CNY 89.47 MM has Fallen at -29.76%

Here's what is working for Suzhou Secote Precision Electronic Co., Ltd.

Raw Material Cost

Fallen by -2.36% (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 Secote Precision Electronic Co., Ltd.

Operating Cash Flow

Lowest at CNY 74.31 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 755.56 MM has Fallen at -11.9%

over average net sales of the previous four periods of CNY 857.59 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 102.61 MM has Fallen at -34.53%

over average net sales of the previous four periods of CNY 156.72 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 89.47 MM has Fallen at -29.76%

over average net sales of the previous four periods of CNY 127.38 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 27.8 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 1.24 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio