Wonderful Sky Financial Group Holdings Ltd. (1260) 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

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Why is Wonderful Sky Financial Group Holdings Ltd. ?

Weak Long Term Fundamental Strength with a 49.60% CAGR growth in Operating Profits over the last 5 years

High Debt Company with a Debt to Equity ratio (avg) at times
ROCE(HY) Highest at 4.54%
DEBT-EQUITY RATIO (HY) Lowest at -62.32 %
CASH AND EQV(HY) Highest at HKD 985.67 MM

With ROE of 4.65%, it has a Very Attractive valuation with a 0.33 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 33.85%, its profits have risen by 281.6% ; the PEG ratio of the company is 0

Market Beating performance in long term as well as near term

Along with generating 33.85% returns in the last 1 year, the stock has outperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wonderful Sky Financial Group Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Wonderful Sky Financial Group Holdings Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wonderful Sky Financial Group Holdings Ltd.

-100.0%

3.24

53.06%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.70%

EBIT Growth (5y)

49.60%

EBIT to Interest (avg)

30.60

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

0.18

Tax Ratio

14.62%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.44%

ROE (avg)

3.49%

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

0.33

EV to EBIT

-10.13

EV to EBITDA

-5.76

EV to Capital Employed

-0.64

EV to Sales

-2.07

PEG Ratio

0.03

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

4.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

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

15What is working for the Company

ROCE(HY)

Highest at 4.54%

DEBT-EQUITY RATIO (HY)

Lowest at -62.32 %

CASH AND EQV(HY)

Highest at HKD 985.67 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.62 times

NET SALES(Q)

At HKD 133.08 MM has Grown at 49.05%

PRE-TAX PROFIT(Q)

Highest at HKD 67.36 MM

NET PROFIT(Q)

Highest at HKD 68.58 MM

EPS(Q)

Highest at HKD 0.05

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 229.84 MM

RAW MATERIAL COST(Y)

Grown by 7.43% (YoY

Here's what is working for Wonderful Sky Financial Group Holdings Ltd.

Pre-Tax Profit

At HKD 67.36 MM has Grown at 103.09%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD 68.58 MM has Grown at 123.83%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Debt-Equity Ratio

Lowest at -62.32 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Net Sales

At HKD 133.08 MM has Grown at 49.05%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Pre-Tax Profit

Highest at HKD 67.36 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 68.58 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Cash and Eqv

Highest at HKD 985.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 6.62 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Wonderful Sky Financial Group Holdings Ltd.

Operating Cash Flow

Lowest at HKD 229.84 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Raw Material Cost

Grown by 7.43% (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