Shandong Head Group Co., Ltd. (002810) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shandong Head Group Co., Ltd.

Why is Shandong Head Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.72% and Operating profit at 1.96% over the last 5 years

INTEREST(HY) At CNY 18.81 MM has Grown at 14.41%
INVENTORY TURNOVER RATIO(HY) Lowest at 4.03%
INTEREST COVERAGE RATIO(Q) Lowest at 585.01

With ROE of 8.72%, it has a attractive valuation with a 1.77 Price to Book Value

Over the past year, while the stock has generated a return of -4.68%, its profits have risen by 13.8% ; the PEG ratio of the company is 1.5
At the current price, the company has a high dividend yield of 2.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.68% 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 Specialty Chemicals)

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

Is Shandong Head Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shandong Head Group Co., Ltd.

-9.2%

-0.01

33.18%

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)

10.72%

EBIT Growth (5y)

1.96%

EBIT to Interest (avg)

64.39

Debt to EBITDA (avg)

1.12

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

0.56

Tax Ratio

15.11%

Dividend Payout Ratio

23.13%

Pledged Shares

Institutional Holding

ROCE (avg)

14.44%

ROE (avg)

15.69%

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

1.77

EV to EBIT

19.43

EV to EBITDA

9.72

EV to Capital Employed

1.58

EV to Sales

2.45

PEG Ratio

1.46

Dividend Yield

2.08%

ROCE (Latest)

8.14%

ROE (Latest)

8.72%

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

Mildly Bearish

No Trend

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

9What is working for the Company

NET SALES(HY)

At CNY 978.47 MM has Grown at 21.57%

NET PROFIT(HY)

At CNY 60.82 MM has Grown at 56.37%

RAW MATERIAL COST(Y)

Fallen by -12.34% (YoY

CASH AND EQV(HY)

Highest at CNY 987.67 MM

DEBT-EQUITY RATIO (HY)

Lowest at 26.1 %

-11What is not working for the Company

INTEREST(HY)

At CNY 18.81 MM has Grown at 14.41%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.03%

INTEREST COVERAGE RATIO(Q)

Lowest at 585.01

OPERATING PROFIT(Q)

Lowest at CNY 50.78 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11 %

Here's what is working for Shandong Head Group Co., Ltd.

Net Sales

At CNY 978.47 MM has Grown at 21.57%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 60.82 MM has Grown at 56.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 987.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 26.1 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -12.34% (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 Head Group Co., Ltd.

Interest

At CNY 18.81 MM has Grown at 14.41%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 585.01

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 4.03% 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

Operating Profit

Lowest at CNY 50.78 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at CNY 0.22 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income