Wangsu Science & Technology Co., Ltd. (300017) 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

Wangsu Science & Technology Co., Ltd.

Why is Wangsu Science & Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.39%

The company has been able to generate a Return on Capital Employed (avg) of 4.39% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -3.96% and Operating profit at 22.72% over the last 5 years

INTEREST(HY) At CNY 8.31 MM has Grown at 148.53%
NET SALES(Q) At CNY 1,141.27 MM has Fallen at -8.38%
OPERATING PROFIT(Q) Lowest at CNY 96.14 MM

With ROE of 6.95%, it has a very attractive valuation with a 2.85 Price to Book Value

Over the past year, while the stock has generated a return of 35.58%, its profits have risen by 13.2% ; the PEG ratio of the company is 3.1
At the current price, the company has a high dividend yield of 2

Consistent Returns over the last 3 years

Along with generating 35.58% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wangsu Science & Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)

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

Is Wangsu Science & Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wangsu Science & Technology Co., Ltd.

51.8%

1.86

56.78%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.96%

EBIT Growth (5y)

22.72%

EBIT to Interest (avg)

22.50

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

0.47

Tax Ratio

8.04%

Dividend Payout Ratio

90.58%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

4.39%

ROE (avg)

3.54%

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

2.85

EV to EBIT

44.24

EV to EBITDA

29.62

EV to Capital Employed

8.22

EV to Sales

4.12

PEG Ratio

3.10

Dividend Yield

2.04%

ROCE (Latest)

18.58%

ROE (Latest)

6.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Bullish

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

ROCE(HY)

Highest at 8.73%

RAW MATERIAL COST(Y)

Fallen by -37.61% (YoY

CASH AND EQV(HY)

Highest at CNY 14,149.93 MM

EPS(Q)

Highest at CNY 0.1

-13What is not working for the Company

INTEREST(HY)

At CNY 8.31 MM has Grown at 148.53%

NET SALES(Q)

At CNY 1,141.27 MM has Fallen at -8.38%

OPERATING PROFIT(Q)

Lowest at CNY 96.14 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.42 %

Here's what is working for Wangsu Science & Technology Co., Ltd.

EPS

Highest at CNY 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 14,149.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -37.61% (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 Wangsu Science & Technology Co., Ltd.

Interest

At CNY 8.31 MM has Grown at 148.53%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 1,141.27 MM has Fallen at -8.38%

over average net sales of the previous four periods of CNY 1,245.59 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 96.14 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.42 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales