Suzhou Shihua New Material Technology Co., Ltd. (688093) 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 Shihua New Material Technology Co., Ltd.

Why is Suzhou Shihua New Material Technology Co., Ltd. ?

With a growth in Net Profit of 69.93%, the company declared Very Positive results in Mar 25

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 243.07 MM
NET SALES(Q) At CNY 252.88 MM has Grown at 91.5%
ROCE(HY) Highest at 16.46%

With ROE of 17.48%, it has a attractive valuation with a 1.21 Price to Book Value

Over the past year, while the stock has generated a return of 75.97%, its profits have risen by 69.5% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 4.1

Market Beating Performance

The stock has generated a return of 75.97% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Suzhou Shihua New Material Technology 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 Shihua New Material Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Suzhou Shihua New Material Technology Co., Ltd.

75.97%

2.36

49.77%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.98%

EBIT Growth (5y)

31.22%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.34

Tax Ratio

12.82%

Dividend Payout Ratio

48.53%

Pledged Shares

Institutional Holding

ROCE (avg)

17.19%

ROE (avg)

13.40%

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

5.38

EV to EBITDA

4.86

EV to Capital Employed

1.27

EV to Sales

2.11

PEG Ratio

0.10

Dividend Yield

4.08%

ROCE (Latest)

23.61%

ROE (Latest)

17.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

31What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 243.07 MM

NET SALES(Q)

At CNY 252.88 MM has Grown at 91.5%

ROCE(HY)

Highest at 16.46%

PRE-TAX PROFIT(Q)

At CNY 100.42 MM has Grown at 105.82%

NET PROFIT(Q)

At CNY 87.16 MM has Grown at 111.23%

RAW MATERIAL COST(Y)

Fallen by -1.57% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.41%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.05%

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -17.02 %

Here's what is working for Suzhou Shihua New Material Technology Co., Ltd.

Net Sales

At CNY 252.88 MM has Grown at 91.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 243.07 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)

Pre-Tax Profit

At CNY 100.42 MM has Grown at 105.82%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 87.16 MM has Grown at 111.23%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 4.41%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.05%

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 -1.57% (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 Shihua New Material Technology Co., Ltd.

Debt-Equity Ratio

Highest at -17.02 %

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