Shenzhen Comix Group Co., Ltd. – Value Analysis (SHENZHEN:2301) : December 28, 2017

Capitalcube gives Shenzhen Comix Group Co., Ltd. a score of 53.

Our analysis is based on comparing Shenzhen Comix Group Co., Ltd. with the following peers – Shanghai M&G Stationery, Inc., China Stationery Ltd., Guangbo Group Stock Co., Ltd. Class A and Asia File Corporation Bhd. (603899-CN, 5214-MY, 002103-CN and 7129-MY).

Investment Outlook

Shenzhen Comix Group Co., Ltd. has a fundamental score of 53 and has a relative valuation of OVERVALUED.

Fundamental Score

Access our research and ratings on Shenzhen Comix Group Co., Ltd.

Company Overview

  • From a peer analysis perspective, relative outperformance last month is up from a median performance last year.
  • It’s current Price/Book of 3.16 is about median in its peer group.
  • The market expects 002301-CN to grow faster than its peers and for the company to improve its current ROE.
  • 002301-CN has relatively low profit margins and median asset efficiency.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • 002301-CN‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
  • The company’s margins are around the peer medians and do not suggest any benefit from a pricing or an operating cost advantage versus peers.
  • While 002301-CN‘s revenues growth has been around the peer median in recent years, the market seems to see faster growth ahead and gives its shares a higher than peer median P/E ratio.
  • The company seems to be over-investing in a business with median returns.
  • 002301-CN has some amount of debt capacity available.

Access our research and ratings on Shenzhen Comix Group Co., Ltd.

Leverage & Liquidity

002301-CN has some amount of debt capacity available.

  • With debt at a relatively low 19.57% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 4.68%), and a reasonable interest coverage level of 2.64x, 002301-CN has a fair amount of debt capacity available.
  • Of the 4 chosen peers for the company, only 2 of the stocks have an outstanding debt balance. Companies with no debt include 603899-CN and 5214-MY.

002301-CN has maintained its relatively low leverage profile from the recent year-end.

  • 002301-CN‘s interest coverage is less than (but within one standard deviation of) its five-year average interest coverage of 26.83x.
  • Though its interest coverage has remained relatively stable at 2.64x compared to 2016, its peer median has decreased to 133.79x from 157.55x during this period.
  • Interest coverage rose 23.76 points relative to peers.
  • 002301-CN‘s debt-EV is similar to last year’s high of 19.57%, which compares to a low of 10.61% in 2015.
  • Compared to 2016, debt-EV has remained relatively stable for both the company (19.57%) and the peer median (4.68%).

Access the detailed analysis for Shenzhen Comix Group Co., Ltd.

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
Shanghai M&G Stationery, Inc. 0 2.59 No interest exp 999
China Stationery Ltd. 0 31.8 No interest exp 999
Guangbo Group Stock Co., Ltd. Class A 4.68 1.46 9.04 7.62
Asia File Corporation Bhd. 7.85 4.02 133.79 196.39
Shenzhen Comix Group Co., Ltd. Class A 19.57 1.6 2.64 3.46
Peer Median 4.68 2.59 133.79 196.39
Best In Class 4.68 31.8 No interest exp 999

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Company Profile

Shenzhen Comix Group Co., Ltd. engages in the manufacture and distribution of office stationery supplies and provision of SaaS services. Its products include cultural, educational and office supplies, furniture and equipment; stationery; computer hardware and software and supplies; communication equipment; hardware; electronic products; financial equipment; security equipment; and conference equipment. The company was founded in 1991 and is headquartered in Shenzhen, China.

Disclaimer

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