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 6.05% and Operating profit at -199.70% over the last 5 years

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

INTEREST(HY) At CNY 0.53 MM has Grown at 32.03%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.96 times
NET SALES(Q) Lowest at CNY 144.35 MM

With ROE of 1.82%, it has a very expensive valuation with a 2.24 Price to Book Value

Over the past year, while the stock has generated a return of -4.29%, 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 -4.29% 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 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.

-2.88%

0.42

27.73%

China Shanghai Composite

24.7%

1.93

12.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.05%

EBIT Growth (5y)

-199.70%

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

2.24

EV to EBIT

-77.10

EV to EBITDA

1211.06

EV to Capital Employed

7.62

EV to Sales

4.28

PEG Ratio

Dividend Yield

0.32%

ROCE (Latest)

-9.89%

ROE (Latest)

1.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

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

11What is working for the Company

NET PROFIT(Q)

At CNY 17.96 MM has Grown at 324.84%

OPERATING CASH FLOW(Y)

Highest at CNY 252.94 MM

RAW MATERIAL COST(Y)

Fallen by -41% (YoY

CASH AND EQV(HY)

Highest at CNY 6,241.36 MM

PRE-TAX PROFIT(Q)

Highest at CNY 26.35 MM

-15What is not working for the Company

INTEREST(HY)

At CNY 0.53 MM has Grown at 32.03%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.96 times

NET SALES(Q)

Lowest at CNY 144.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -4.5 %

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

Pre-Tax Profit

At CNY 26.35 MM has Grown at 218.66%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 17.96 MM has Grown at 324.84%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 252.94 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

Highest at CNY 26.35 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 6,241.36 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -41% (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 0.53 MM has Grown at 32.03%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 0.96 times 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 144.35 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -15.36%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at -4.5 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales