Shandong Denghai Seeds Co., Ltd. (002041) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shandong Denghai Seeds Co., Ltd.

Why is Shandong Denghai Seeds Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 19.40%

The company has been able to generate a Return on Capital Employed (avg) of 19.40% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 7.20% and Operating profit at 1.49% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

NET PROFIT(HY) At CNY 21.38 MM has Grown at -88.66%
INTEREST(HY) At CNY 0.65 MM has Grown at 30.22%
ROCE(HY) Lowest at 1.42%

With ROE of 1.82%, it has a very expensive valuation with a 2.23 Price to Book Value

Over the past year, while the stock has generated a return of -14.75%, its profits have fallen by -75.5%
At the current price, the company has a high dividend yield of 0.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -14.75% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Other Agricultural Products)

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

Is Shandong Denghai Seeds Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shandong Denghai Seeds Co., Ltd.

-9.87%

0.25

33.17%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.20%

EBIT Growth (5y)

1.49%

EBIT to Interest (avg)

95.16

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.82

Sales to Capital Employed (avg)

0.38

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

45.03%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

19.40%

ROE (avg)

5.67%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

123

Industry P/E

Price to Book Value

2.23

EV to EBIT

-76.50

EV to EBITDA

1201.60

EV to Capital Employed

7.56

EV to Sales

4.25

PEG Ratio

Dividend Yield

0.32%

ROCE (Latest)

-9.89%

ROE (Latest)

1.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -31.57% (YoY

CASH AND EQV(HY)

Highest at CNY 6,068.38 MM

-34What is not working for the Company

NET PROFIT(HY)

At CNY 21.38 MM has Grown at -88.66%

INTEREST(HY)

At CNY 0.65 MM has Grown at 30.22%

ROCE(HY)

Lowest at 1.42%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.1%

NET SALES(Q)

Lowest at CNY 161.27 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.14 %

Here's what is working for Shandong Denghai Seeds Co., Ltd.

Cash and Eqv

Highest at CNY 6,068.38 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -31.57% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Shandong Denghai Seeds Co., Ltd.

Net Profit

At CNY 21.38 MM has Grown at -88.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 0.65 MM has Grown at 30.22%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 161.27 MM has Fallen at -30.16%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 1.1% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at CNY 161.27 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at -3.14 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales