Why is Shandong Donghong Pipe Industry Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -0.57% and Operating profit at -17.38% over the last 5 years
2
Flat results in Mar 25
- NET PROFIT(HY) At CNY 43.55 MM has Grown at -26.72%
- ROCE(HY) Lowest at 6.49%
- NET SALES(Q) At CNY 517.71 MM has Fallen at -19.21%
3
With ROE of 4.57%, it has a attractive valuation with a 0.39 Price to Book Value
- Over the past year, while the stock has generated a return of 8.51%, its profits have fallen by -28.7%
- At the current price, the company has a high dividend yield of 4.5
How much should you hold?
- Overall Portfolio exposure to Shandong Donghong Pipe Industry Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Shandong Donghong Pipe Industry Co., Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Shandong Donghong Pipe Industry Co., Ltd.
8.51%
0.86
29.00%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
-0.57%
EBIT Growth (5y)
-17.38%
EBIT to Interest (avg)
16.32
Debt to EBITDA (avg)
1.68
Net Debt to Equity (avg)
0.05
Sales to Capital Employed (avg)
0.84
Tax Ratio
13.52%
Dividend Payout Ratio
27.27%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.44%
ROE (avg)
8.67%
Valuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.39
EV to EBIT
10.95
EV to EBITDA
7.00
EV to Capital Employed
0.42
EV to Sales
0.59
PEG Ratio
NA
Dividend Yield
4.48%
ROCE (Latest)
3.80%
ROE (Latest)
4.57%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 209.87 MM
RAW MATERIAL COST(Y)
Fallen by -47.49% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 5.39 %
-17What is not working for the Company
NET PROFIT(HY)
At CNY 43.55 MM has Grown at -26.72%
ROCE(HY)
Lowest at 6.49%
NET SALES(Q)
At CNY 517.71 MM has Fallen at -19.21%
INTEREST(Q)
At CNY 5.13 MM has Grown at 38.75%
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.39%
Here's what is working for Shandong Donghong Pipe Industry Co., Ltd.
Operating Cash Flow
Highest at CNY 209.87 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Lowest at 5.39 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -47.49% (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 Donghong Pipe Industry Co., Ltd.
Net Sales
At CNY 517.71 MM has Fallen at -19.21%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Interest
At CNY 5.13 MM has Grown at 38.75%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Profit
At CNY 43.55 MM has Grown at -26.72%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Debtors Turnover Ratio
Lowest at 1.39%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






