Probability of Default
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Soontrue Machinery Credit Risk Analysis
0.03 % over a 1-year horizon
Increased by + 0.01 % last mo.
Probability of defaultThe default probability for Soontrue Machinery has demonstrated considerable volatility between August and July [martini.ai]. Starting at 0.546 in August , the company's credit risk profile initially showed signs of strength before sharply deteriorating, peaking at 1.366 in July [martini.ai]. This peak in default probability coincided with a period of significant market disruption, potentially influenced by global supply chain challenges that heavily impacted manufacturing sectors worldwide, including China, where Soontrue Machinery is headquartered [martini.ai]. Subsequently, the default probability gradually declined, demonstrating some stabilization, and closed at 0.534 in July [martini.ai]. Despite the fluctuations, the overall change indicates a slight decrease in the default probability for Soontrue Machinery over the observed period, suggesting a marginal improvement in its credit risk profile [martini.ai].
The credit rating of Soontrue Machinery experienced several shifts, reflecting the changes in its default probability [martini.ai]. Beginning with a martini_letter_rating of A2 in August , the company underwent a credit rating downgrade, reaching a low of B2 multiple times between May and March , indicating a period of weakened credit standing [martini.ai]. This period aligns with the challenges faced by many manufacturers in China and globally, as supply chain bottlenecks and increased raw material costs put pressure on financial performance. However, the rating improved to B1 by July and then to A3 by March , before finally settling back to A2 by November , where it remained until July [martini.ai]. These rating migrations highlight the dynamic nature of Soontrue Machinery's credit quality and the market's evolving perception of its risk of default [martini.ai]. The recovery in credit rating likely reflects Soontrue Machinery's ability to adapt to changing market conditions, potentially through increased efficiency in its packaging solutions and a focus on automation scalability, aligning with industry trends [https://www.soontruemachinery.com/article/how-vertical-packaging-machines-improve-bagging-efficiency-in-.html].
In summary, the credit risk data for Soontrue Machinery reveals a period of initial stability followed by significant financial stress and subsequent recovery [martini.ai]. While the default probability has decreased slightly from its initial value, the credit rating downgrades and subsequent upgrades suggest a turbulent period in the company's financial health [martini.ai]. The stabilization in recent quarters indicates improving fundamentals, but the earlier volatility underscores the importance of continued monitoring of Soontrue Machinery's credit standing [martini.ai]. As a manufacturer of packaging machinery, Soontrue Machinery's performance is closely tied to the broader economic environment and the demand for its products in industries such as food, pharmaceuticals, and consumer goods. The company's focus on technological innovation and compliance with international standards may also play a role in its creditworthiness [http://enb2b.com/UserCompany/CompanyDetail.asp].
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Credit Risk Assessment of Soontrue Machinery
Soontrue Machinery's credit spreads have generally remained contained, indicating a relatively stable credit profile. This stability is particularly noteworthy given the backdrop of significant government infrastructure investment in China, which drives demand for construction machinery and supports the creditworthiness of companies in this microsector 13. Over the period from August to July , the average Z-spread for Soontrue Machinery was 1.460%. The spreads ranged from a minimum of 0.203% to a maximum of 18.653%, reflecting some volatility, particularly in the latter half of the observed period. The stability in the earlier years suggests consistent market confidence, while the later fluctuations could be indicative of emerging market concerns or company-specific factors influencing investor sentiment. These fluctuations may also reflect broader economic uncertainties, against which major member enterprises in the China Construction Machinery Association (CCMA) have demonstrated resilience, with operating revenues up over 10% year-on-year early in 4.
When compared to its peers, Soontrue Machinery exhibits a more favorable credit risk profile based on credit spreads. The relatively tighter credit spreads for Soontrue Machinery suggest that the company benefits from a lower cost of borrowing compared to some of its peers. This favorable market perception could be attributed to a stronger financial position, more stable business operations, or a combination of both. The ability of Soontrue Machinery to maintain lower spreads, even during periods of market stress, underscores its creditworthiness and resilience. This resilience is further supported by the recovering sales of construction equipment in China, with first-half sales of key equipment like excavators surging nearly 23%, driven by government stimulus measures supporting infrastructure investment 2.
This positions Soontrue Machinery favorably in capital markets, enhancing its access to funding and potentially attracting investment-grade interest. The company's ability to maintain lower spreads, even during periods of market stress, underscores its creditworthiness and resilience. This resilience is particularly important given the ongoing technological upgrades toward automation in the construction equipment sector, which are expected to boost market demand further 1. Overall, the credit risk profile of Soontrue Machinery benefits from strong government-driven infrastructure spending, recovering sales after property market challenges, and stable financial performance, all of which contribute to the company's relatively contained credit spreads 124.
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This report assesses the credit risk profile of Foshan Soontrue Fengyi Intelligent Equipment Co., Ltd., known as Soontrue Machinery, a Chinese manufacturer specializing in advanced packaging machinery. Founded in and headquartered in Foshan, China, Soontrue Machinery focuses on vertical packaging machines and tissue paper converting lines, serving industries including food, pharmaceuticals, and consumer goods [http://enb2b.com/UserCompany/CompanyDetail.asp]. The analysis covers the period between August and July , examining default probability, credit rating migrations, credit spread dynamics, and macroeconomic sensitivities [martini.ai].
Soontrue Machinery's credit risk experienced volatility, with the default probability peaking at 1.366 in July amid global supply chain disruptions [martini.ai]. The credit rating declined from A2 to B2 multiple times between mid- and early , before recovering to A2 by late [martini.ai]. This recovery aligns with improvements in China’s industrial equipment manufacturing sector, driven by demand for efficient packaging solutions and regulatory emphasis on product safety [https://www.soontruemachinery.com/article/how-vertical-packaging-machines-improve-bagging-efficiency-in-.html]. Recent data indicates that the risk associated with Soontrue Machinery is comparable to the credit quality associated with the top 51-percentile of the bond universe [martini.ai].
The company's credit spread has widened by 0.059, signaling a deterioration in credit quality and increasing credit risk [martini.ai]. This widening suggests potential concerns about Soontrue Machinery's future financial performance or sector outlook. While some companies in other sectors experienced larger spread widenings, direct comparisons are less relevant due to differing business operations. The current spread for Soontrue Machinery is at 1.2% [martini.ai]. The credit spread (and risk) for Soontrue Machinery has increased dramatically by 33.7% in the last three months, and 16.8% in the last twelve months [martini.ai].
Despite recent volatility, Soontrue Machinery's credit spreads have generally remained contained, with an average Z-spread of 1.460% between August and July [martini.ai]. Compared to its peers, Soontrue Machinery exhibits a more favorable credit risk profile based on credit spreads, benefiting from a lower cost of borrowing. This resilience is supported by government-driven infrastructure spending and recovering sales in the construction equipment sector [martini.ai].
Macroeconomic factors significantly influence Soontrue Machinery's credit risk. The company has a negative exposure to the S&P 500 (-0.061), indicating that a market downturn could widen credit spreads [martini.ai]. Conversely, Soontrue Machinery demonstrates a positive exposure to the U.S. dollar (0.040), suggesting that a strengthening dollar could negatively impact its credit profile [martini.ai]. Oil prices also have a positive exposure effect (0.022) on Soontrue Machinery’s credit risk, as increases in oil prices tend to raise costs for industrial firms [martini.ai].
Soontrue are exported all over the world and different industries with quality first. Our belief is to provide our customers with more and better high value-added products. Let's create a better future together.
In conclusion, Soontrue Machinery's credit profile has shown signs of improvement, but remains sensitive to macroeconomic factors and market sentiment. Continued monitoring is essential to assess the company's ability to navigate potential challenges and maintain its creditworthiness.
Financial Overview of Soontrue Machinery
Given the limited availability of financial data for Soontrue Machinery, a comprehensive credit risk assessment is challenging. As of the latest search, key financial metrics such as annual revenue, revenue growth rate, and profitability ratios like net profit margin, return on assets (ROA), and return on equity (ROE) are not publicly disclosed. This lack of transparency makes it difficult to ascertain the company's financial performance and compare it against industry peers in the machinery sector. Without these fundamental figures, stakeholders lack the necessary insights to evaluate Soontrue Machinery's operational efficiency and profitability trends.
The absence of liquidity and leverage ratios further complicates the assessment of Soontrue Machinery's financial stability. Critical metrics such as the current ratio, debt-to-equity ratio, and debt-to-assets ratio are unavailable, preventing an informed analysis of the company's short-term obligations and long-term solvency. Similarly, efficiency measures like asset turnover ratio, inventory turnover, and accounts receivable turnover are missing, hindering the evaluation of how effectively Soontrue Machinery manages its assets and working capital. These metrics are essential for understanding the company's operational efficiency and its ability to convert assets into revenue.
Furthermore, cash flow details, including operating cash flow, free cash flow, and cash flow to debt ratios, have not been found in the available search results. These figures are crucial for assessing Soontrue Machinery's ability to generate cash, fund its operations, and service its debt obligations. Without this information, it is impossible to determine the company's financial flexibility and its capacity to withstand economic downturns or unexpected financial challenges. The absence of credit ratings, beta coefficient (a measure of market risk), and default probability further underscores the difficulty in evaluating Soontrue Machinery's overall risk profile.
In conclusion, the lack of publicly available financial data for Soontrue Machinery significantly impedes a thorough credit risk analysis. To accurately evaluate the company's financial health, access to audited financial statements or reliable third-party analyses is necessary. Without this information, stakeholders are unable to make informed decisions regarding investments or business relationships with Soontrue Machinery.
Due to the limited availability of financial data for Soontrue Machinery, a detailed analysis of its debt structure is challenging. Without access to the company's official financial statements, credit rating reports, or specialized financial databases, it is not possible to provide a comprehensive assessment of its debt profile. Key metrics such as annual revenue, profitability, liquidity, and leverage ratios are essential for evaluating the company's ability to manage its debt obligations. Furthermore, information on the maturity profile of Soontrue Machinery's debt, including the timing and amounts of principal repayments, is crucial for understanding its near-term and long-term financial obligations.
An in-depth understanding of Soontrue Machinery's debt structure would require a thorough examination of its debt-to-equity ratio, debt-to-EBITDA ratio, and interest coverage ratio. These metrics provide insights into the company's leverage and its capacity to service its debt from its operating income. Additionally, assessing the composition of Soontrue Machinery's debt, including the mix of short-term and long-term debt, as well as the proportion of fixed-rate and floating-rate debt, is important for evaluating its exposure to interest rate risk. Market-based risk indicators, such as credit spreads on its bonds or loans, would also offer valuable information about investor perceptions of the company's creditworthiness.
To conduct a robust credit risk assessment of Soontrue Machinery, it is necessary to obtain detailed financial information from reliable sources. This may involve contacting the company directly, consulting Chinese corporate registries or stock exchange filings (if applicable), or utilizing paid professional services such as Bloomberg Terminal or S&P Capital IQ. With access to accurate and up-to-date financial data, a comprehensive analysis of Soontrue Machinery's debt structure can be performed, enabling a more informed assessment of its creditworthiness and ability to meet its financial obligations.
In conclusion, the absence of verified financial data for Soontrue Machinery prevents a thorough evaluation of its debt structure and associated credit risks. Obtaining access to the company's financial statements and other relevant financial information is essential for conducting a comprehensive credit analysis. Without such data, any assessment of Soontrue Machinery's creditworthiness would be speculative and unreliable.
Based on publicly available information, there are no specific records or reports indicating that Soontrue Machinery, a China-based company, is currently involved in any significant regulatory lawsuits. A comprehensive search of news sources and legal databases did not yield any results pertaining to legal disputes or regulatory actions against Soontrue Machinery [1][2][3][4]. The absence of such information suggests that, at present, regulatory lawsuits do not pose an identifiable credit risk to Soontrue Machinery. However, it is important to note that legal proceedings can arise unexpectedly, and ongoing monitoring of legal and regulatory developments in China is advisable to ensure a complete understanding of Soontrue Machinery's risk profile.
Currently, there is no evidence to suggest that Soontrue Machinery has been involved in any recent merger or acquisition (M&A) activities. Standard financial news sources and industry reports do not mention any transactions where Soontrue Machinery was either the acquirer or the target [1][2][3][4]. The lack of M&A activity could indicate a strategic focus on organic growth or a cautious approach to expansion. For credit risk assessment, the absence of M&A activity implies no immediate changes to Soontrue Machinery's capital structure or business operations stemming from such transactions. Continuous monitoring is recommended to capture any potential future M&A developments that could impact Soontrue Machinery's financial stability and creditworthiness.
As of the latest available information, there are no specific reports detailing the impact of tariffs on Soontrue Machinery's business operations. Given its location in China, Soontrue Machinery may be subject to international trade policies and tariffs, particularly those imposed by major economies such as the United States and the European Union. However, without specific data, it is challenging to quantify the precise financial impact of these tariffs on Soontrue Machinery's revenues, costs, and profitability [1][2][3][4]. Monitoring trade policy changes and their potential effects on the machinery manufacturing sector in China is crucial for assessing the ongoing credit risk associated with tariff impacts on Soontrue Machinery.
In summary, while current information does not indicate any immediate concerns related to regulatory lawsuits, M&A activities, or tariff impacts on Soontrue Machinery, continuous monitoring of these factors is essential. Changes in the regulatory landscape, potential M&A transactions, and shifts in international trade policies could all influence Soontrue Machinery's financial health and credit risk profile. Further in-depth analysis, including direct engagement with the company and consultation of specialized databases, may be necessary to gain a more granular understanding of these potential risks.
Thanksgiving Feedback
Dear customers : We are grateful for the trust and support for all of Soontrue loyal friends, partners, and customers, as the coming day of 30th anniversary, we would like to release a series ofbusiness promotion to feedback all of you. Order amount deposit payment (swift copy shown) on 28th - 30th .June Gift feedback 35,000 USD ~ 50,000 USD 3,000 USD Value card ≥90,000 USD 6,000 USD Value card ≥120,000 USD 10,000 USD Value card Remarks: If the order value is more than USD120,000, the card value will be increased accordingly. For this 'Special gift' , it's valid for 5 months, you can use to deduct the cost of spare part, ocean freight, after sales service and so on. New Customer introduction rule: If you introduce a new customer to us during this period, you will be given a 500 USD value card, it has same function as stated above. If the introduced customer buy from us during this promotion 3 days, the customer will get the according value card from us, meanwhilebecause of yourintroduction,you will get same value card from us again. Shanghai Soontrue Machinery Equipment Co.,Ltd June.
Tissue Paper Exhibition | New image, New Equipment, New IoT
On May 26, the 28th Tissue Paper Technology Exhibition kicked off at Nanjing International Expo Center. Professionals from all over the world gathered together to attend this annual industry event. Soontrue brought its smart manipulator boxing and palletizing solutions and smart IoT system to this year's household paper exhibition. The solutions and system of Soontrue meet the diversified needs of enterprises, and set sail for smart manufacturing! New equipment New IoT As a benchmark enterprise in the packaging industry, Soontrue continues to make efforts in smart packaging technology. The smart robot boxing and palletizing production line exhibited this time integrates the solutions of soft pumping, single-package, and mid-package robot boxing. Intelligent manipulator packing and palletizing production line E-commerce packaging solution for soft-pumping packaging robots Composed of ZB300H single charter machine and ZX660E e-commerce automatic carton box filling machine, a one-step solution, from raw materials to finished products, meets the differentiated packaging needs of customers. (Pic: ZX660E soft pumping e-commerce small palletizing manipulator auto box packing machine box rate: 5-12 boxes/ min) ZX660E soft pumping e-commerce small palletizing manipulator auto box packing machine Solutions to box the medium-sized soft draw Composed of ZB300HN single charter machine, TD300AN medium charter machine, ZX660B manipulator box packer, and palletizing robot, multiple equipments work together, flexibly and accurately to achieve high-efficiency and high-quality production. Solutions to cotton packaging The packaging speed of ZB800M cotton packing machine is 40~75 bags/min. Driven by a 10-axis servo system, the operation is more stable. Also, the customer can customize the packaging bag size. TD800M cotton soft tissue pre-made bag packaging machine has a packaging speed of 45-60 bags/min, with stable performance and fast response speed. ZH200 full servo cartoning machine has a cartoning speed of 30-90 boxes/min, suitable for large-size household paper cartoning and packaging so as to improve the production efficiency. Soontrue smart factory data monitoring system Soontrue never stops pursuing innovation. It has built an IoT system platform for customers in a configuration mode, which has realized three-dimensional visualization, information integration, and remote management and control, greatly improving the information and visualization level of equipment management. Exhibition site Soontrue Integrate endless innovation into the product Ultimate experience for new packaging Wisdom creates a comfortable life! For more information, please browse the information below and contact us: Shanghai Soontrue Machinery Equipment Co.,Ltd (base) ：021-- ADD: No. Songze Avenue, Qingpu Industrial Park, Shanghai
If you are looking for more details, kindly visit Soontrue Group.