Changzhou Shenli Electrical Machine Inc. Co. (603819) 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

Changzhou Shenli Electrical Machine Inc. Co.

Why is Changzhou Shenli Electrical Machine Inc. Co. ?

Poor Management Efficiency with a low ROCE of 1.70%

The company has been able to generate a Return on Capital Employed (avg) of 1.70% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 8.09% and Operating profit at 8.41% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.47% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.09% and Operating profit at 8.41% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At CNY 9.97 MM has Grown at 28.31%
OPERATING CASH FLOW(Y) Lowest at CNY -38.29 MM
RAW MATERIAL COST(Y) Grown by 11.24% (YoY)

With ROE of 3.64%, it has a very expensive valuation with a 3.14 Price to Book Value

Over the past year, while the stock has generated a return of -7.38%, its profits have fallen by -73.8%
At the current price, the company has a high dividend yield of 0.2

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Changzhou Shenli Electrical Machine Inc. Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Changzhou Shenli Electrical Machine Inc. Co.

-22.97%

0.26

39.67%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.09%

EBIT Growth (5y)

8.41%

EBIT to Interest (avg)

-0.65

Debt to EBITDA (avg)

6.93

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

0.99

Tax Ratio

16.07%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.70%

ROE (avg)

5.47%

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

3.14

EV to EBIT

77.04

EV to EBITDA

42.32

EV to Capital Employed

2.42

EV to Sales

2.08

PEG Ratio

Dividend Yield

0.17%

ROCE (Latest)

3.14%

ROE (Latest)

3.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bearish

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

NET PROFIT(HY)

Higher at CNY 16.68 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 6.29 times

NET SALES(Q)

Highest at CNY 410.04 MM

-9What is not working for the Company

INTEREST(HY)

At CNY 9.97 MM has Grown at 28.31%

OPERATING CASH FLOW(Y)

Lowest at CNY -38.29 MM

RAW MATERIAL COST(Y)

Grown by 11.24% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 3.26 %

Here's what is working for Changzhou Shenli Electrical Machine Inc. Co.

Net Profit

At CNY 16.68 MM has Grown at 129.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Higher at CNY 16.68 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 6.29 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at CNY 410.04 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 410.04 MM has Grown at 17.49%

over average net sales of the previous four periods of CNY 348.98 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Changzhou Shenli Electrical Machine Inc. Co.

Interest

At CNY 9.97 MM has Grown at 28.31%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -38.29 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 (CNY MM)

Operating Profit Margin

Lowest at 3.26 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 11.24% (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