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

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 34.14%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 411.12 MM
ROCE(HY) Highest at 16.71%
RAW MATERIAL COST(Y) Fallen by -9.96% (YoY)

With ROE of 17.48%, it has a very attractive valuation with a 5.31 Price to Book Value

Over the past year, while the stock has generated a return of 55.16%, its profits have risen by 69.5% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0.9

Market Beating performance in long term as well as near term

Along with generating 55.16% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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.

25.89%

2.56

48.98%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.74%

EBIT Growth (5y)

28.47%

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

5.31

EV to EBIT

27.14

EV to EBITDA

24.54

EV to Capital Employed

6.41

EV to Sales

10.66

PEG Ratio

0.44

Dividend Yield

0.93%

ROCE (Latest)

23.61%

ROE (Latest)

17.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

25What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 411.12 MM

ROCE(HY)

Highest at 16.71%

RAW MATERIAL COST(Y)

Fallen by -9.96% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -39.7 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.5 times

DIVIDEND PER SHARE(HY)

Highest at CNY 3.26

NET SALES(Q)

Highest at CNY 305.58 MM

OPERATING PROFIT(Q)

Highest at CNY 139.06 MM

PRE-TAX PROFIT(Q)

Highest at CNY 143.2 MM

NET PROFIT(Q)

Highest at CNY 123.36 MM

EPS(Q)

Highest at CNY 0.44

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Operating Cash Flow

Highest at CNY 411.12 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 Sales

Highest at CNY 305.58 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 139.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 143.2 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 123.36 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.44

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -39.7 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.5 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at CNY 3.26

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Raw Material Cost

Fallen by -9.96% (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