ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is China Shengmu Organic Milk Ltd. ?
1
High Management Efficiency with a high ROCE of 17.46%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.00
3
Poor long term growth as Operating profit has grown by an annual rate -3.45% of over the last 5 years
4
Negative results in Dec 25
- OPERATING CASH FLOW(Y) Lowest at HKD 1,869.03 MM
- ROCE(HY) Lowest at -9.93%
- RAW MATERIAL COST(Y) Grown by 25.99% (YoY)
5
With ROE of 21.59%, it has a Fair valuation with a 0.65 Price to Book Value
- Over the past year, while the stock has generated a return of 78.57%, its profits have risen by 9.4% ; the PEG ratio of the company is 0.3
6
Market Beating Performance
- The stock has generated a return of 78.57% in the last 1 year, much higher than market (Hang Seng Hong Kong) returns of 8.76%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to China Shengmu Organic Milk Ltd. should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is China Shengmu Organic Milk Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
China Shengmu Organic Milk Ltd.
-100.0%
1.13
58.37%
Hang Seng Hong Kong
8.76%
0.45
19.63%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.98%
EBIT Growth (5y)
-3.45%
EBIT to Interest (avg)
13.00
Debt to EBITDA (avg)
1.10
Net Debt to Equity (avg)
0.37
Sales to Capital Employed (avg)
0.53
Tax Ratio
1.88%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
17.46%
ROE (avg)
20.11%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
3
Industry P/E
Price to Book Value
0.65
EV to EBIT
5.21
EV to EBITDA
4.33
EV to Capital Employed
0.73
EV to Sales
1.19
PEG Ratio
0.32
Dividend Yield
NA
ROCE (Latest)
13.97%
ROE (Latest)
21.59%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-15What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at HKD 1,869.03 MM
ROCE(HY)
Lowest at -9.93%
RAW MATERIAL COST(Y)
Grown by 25.99% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 9.91 times
OPERATING PROFIT(Q)
Lowest at HKD 378.78 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 22.07 %
PRE-TAX PROFIT(Q)
Lowest at HKD -22.28 MM
NET PROFIT(Q)
Lowest at HKD -23.38 MM
EPS(Q)
Lowest at HKD -0.04
Here's what is not working for China Shengmu Organic Milk Ltd.
Operating Cash Flow
Lowest at HKD 1,869.03 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (HKD MM)
Pre-Tax Profit
At HKD -22.28 MM has Fallen at -104.69%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (HKD MM)
Operating Profit
Lowest at HKD 378.78 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (HKD MM)
Operating Profit Margin
Lowest at 22.07 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at HKD -22.28 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (HKD MM)
Net Profit
Lowest at HKD -23.38 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (HKD MM)
Net Profit
Fallen at -105.02%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (HKD MM)
EPS
Lowest at HKD -0.04
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (HKD)
Debtors Turnover Ratio
Lowest at 9.91 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 25.99% (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
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