Why is Jiangsu Eastern Shenghong Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 1.87%
- The company has been able to generate a Return on Capital Employed (avg) of 1.87% signifying low profitability per unit of total capital (equity and debt)
2
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 39.93% and Operating profit at -178.57% 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 2.76% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 39.93% and Operating profit at -178.57% over the last 5 years
4
The company has declared Negative results for the last 4 consecutive quarters
- INTEREST(HY) At CNY 2,447.11 MM has Grown at 98.89%
- INTEREST COVERAGE RATIO(Q) Lowest at 55.06
- RAW MATERIAL COST(Y) Grown by 28.66% (YoY)
5
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 17.02%, its profits have fallen by -207.7%
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 Power)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Jiangsu Eastern Shenghong Co., Ltd. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Jiangsu Eastern Shenghong Co., Ltd.
-0.74%
0.63
29.91%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
39.93%
EBIT Growth (5y)
-178.57%
EBIT to Interest (avg)
1.56
Debt to EBITDA (avg)
18.61
Net Debt to Equity (avg)
3.77
Sales to Capital Employed (avg)
0.72
Tax Ratio
37.22%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.87%
ROE (avg)
2.76%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.48
EV to EBIT
-477.05
EV to EBITDA
24.99
EV to Capital Employed
1.10
EV to Sales
1.52
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-0.23%
ROE (Latest)
-6.67%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
7What is working for the Company
PRE-TAX PROFIT(Q)
Highest at CNY 299.59 MM
NET PROFIT(Q)
Highest at CNY 315.16 MM
EPS(Q)
Highest at CNY 0.05
-22What is not working for the Company
INTEREST(HY)
At CNY 2,447.11 MM has Grown at 98.89%
INTEREST COVERAGE RATIO(Q)
Lowest at 55.06
RAW MATERIAL COST(Y)
Grown by 28.66% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 29.56%
NET SALES(Q)
At CNY 28,555.55 MM has Fallen at -11.64%
OPERATING PROFIT(Q)
Lowest at CNY 637.96 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 2.23 %
Here's what is working for Jiangsu Eastern Shenghong Co., Ltd.
Pre-Tax Profit
At CNY 299.59 MM has Grown at 131.93%
over average net sales of the previous four periods of CNY -938.26 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 315.16 MM has Grown at 153.95%
over average net sales of the previous four periods of CNY -584.14 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Pre-Tax Profit
Highest at CNY 299.59 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 315.16 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.05
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Here's what is not working for Jiangsu Eastern Shenghong Co., Ltd.
Interest
At CNY 2,447.11 MM has Grown at 98.89%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 55.06
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
At CNY 28,555.55 MM has Fallen at -11.64%
over average net sales of the previous four periods of CNY 32,316.95 MMMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 637.96 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 2.23 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debtors Turnover Ratio
Lowest at 29.56%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 28.66% (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






