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

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 4.53% and Operating profit at 11.12% over the last 5 years

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 397.43 MM
NET SALES(Q) At CNY 264.63 MM has Grown at 62.7%
RAW MATERIAL COST(Y) Fallen by -23.03% (YoY)

With ROE of 3.19%, it has a fair valuation with a 1.94 Price to Book Value

Over the past year, while the stock has generated a return of -10.80%, its profits have risen by 51.6% ; the PEG ratio of the company is 1.2
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -10.80% 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 hold?

Overall Portfolio exposure to Shandong Denghai Seeds Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

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

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shandong Denghai Seeds Co., Ltd.

-12.91%

-0.15

29.61%

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)

4.53%

EBIT Growth (5y)

11.12%

EBIT to Interest (avg)

95.16

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.82

Sales to Capital Employed (avg)

0.36

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

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

Industry P/E

Price to Book Value

1.94

EV to EBIT

116.43

EV to EBITDA

44.03

EV to Capital Employed

7.66

EV to Sales

3.33

PEG Ratio

1.18

Dividend Yield

ROCE (Latest)

6.58%

ROE (Latest)

3.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 397.43 MM

NET SALES(Q)

At CNY 264.63 MM has Grown at 62.7%

RAW MATERIAL COST(Y)

Fallen by -23.03% (YoY

CASH AND EQV(HY)

Highest at CNY 6,439.15 MM

PRE-TAX PROFIT(Q)

At CNY 38.84 MM has Grown at 60.78%

NET PROFIT(Q)

At CNY 30.05 MM has Grown at 53.89%

-3What is not working for the Company

INTEREST(9M)

At CNY 0.99 MM has Grown at 11.9%

DEBTORS TURNOVER RATIO(HY)

Lowest at 19.26 times

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

Net Sales

At CNY 264.63 MM has Grown at 62.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 397.43 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 38.84 MM has Grown at 60.78%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 30.05 MM has Grown at 53.89%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 6,439.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -23.03% (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.

Interest

At CNY 0.99 MM has Grown at 11.9%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 19.26 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio