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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Wonderful Sky Financial Group Holdings Ltd.

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Why is Wonderful Sky Financial Group Holdings Ltd. ?

Weak Long Term Fundamental Strength with a -13.79% 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 2.77%
DEBT-EQUITY RATIO (HY) Lowest at -59.18 %
RAW MATERIAL COST(Y) Fallen by -40.78% (YoY)

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 75.00%, its profits have risen by 281.6% ; the PEG ratio of the company is 0

Consistent Returns over the last 3 years

Along with generating 75.00% returns in the last 1 year, the stock has outperformed Hang Seng Hong Kong in each of the last 3 annual periods

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.

76.47%

3.13

51.86%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-15.78%

EBIT Growth (5y)

-13.79%

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

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

17What is working for the Company

ROCE(HY)

Highest at 2.77%

DEBT-EQUITY RATIO (HY)

Lowest at -59.18 %

RAW MATERIAL COST(Y)

Fallen by -40.78% (YoY

CASH AND EQV(HY)

Highest at HKD 896.39 MM

OPERATING PROFIT(Q)

Highest at HKD 54.38 MM

OPERATING PROFIT MARGIN(Q)

Highest at 53.55 %

PRE-TAX PROFIT(Q)

Highest at HKD 52.33 MM

NET PROFIT(Q)

Highest at HKD 39.84 MM

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 167.38 MM

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

Pre-Tax Profit

At HKD 52.33 MM has Grown at 216.76%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD 39.84 MM has Grown at 171.18%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Debt-Equity Ratio

Lowest at -59.18 % 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

Operating Profit

Highest at HKD 54.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Operating Profit Margin

Highest at 53.55 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at HKD 52.33 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 39.84 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Cash and Eqv

Highest at HKD 896.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -40.78% (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 Wonderful Sky Financial Group Holdings Ltd.

Operating Cash Flow

Lowest at HKD 167.38 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 (HKD MM)