Shahe Industrial Co., Ltd. (000014) 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

Shahe Industrial Co., Ltd.

Why is Shahe Industrial Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 12.14%

Poor long term growth as Net Sales has grown by an annual rate of -2.30% and Operating profit at -267.47%
The company has been able to generate a Return on Equity (avg) of 12.14% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.30% and Operating profit at -267.47%

Flat results in Mar 26

INTEREST(HY) At CNY 3.95 MM has Grown at 1,381.85%
ROCE(HY) Lowest at -9.97%
RAW MATERIAL COST(Y) Grown by 18.7% (YoY)

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 -11.56%, its profits have fallen by -981%

Below par performance in long term as well as near term

Along with generating -11.56% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Realty)

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

Is Shahe Industrial Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shahe Industrial Co., Ltd.

-11.56%

0.09

52.59%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.30%

EBIT Growth (5y)

-267.47%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

70.71%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

30.60%

ROE (avg)

12.14%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.87

EV to EBIT

-15.55

EV to EBITDA

-17.26

EV to Capital Employed

2.18

EV to Sales

7.22

PEG Ratio

Dividend Yield

ROCE (Latest)

-14.02%

ROE (Latest)

-10.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 99.67 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 0.29 times

NET SALES(Q)

At CNY 112.6 MM has Grown at 28.6%

PRE-TAX PROFIT(Q)

Highest at CNY -6.12 MM

-20What is not working for the Company

INTEREST(HY)

At CNY 3.95 MM has Grown at 1,381.85%

ROCE(HY)

Lowest at -9.97%

RAW MATERIAL COST(Y)

Grown by 18.7% (YoY

NET PROFIT(Q)

Fallen at -30.35%

Here's what is working for Shahe Industrial Co., Ltd.

Operating Cash Flow

Highest at CNY 99.67 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 112.6 MM has Grown at 28.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY -6.12 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 0.29 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Shahe Industrial Co., Ltd.

Interest

At CNY 3.95 MM has Grown at 1,381.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

Fallen at -30.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 18.7% (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