Shang Gong Group Co., Ltd. (600843) 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

Shang Gong Group Co., Ltd.

Why is Shang Gong Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.38%

The company has been able to generate a Return on Capital Employed (avg) of 2.38% 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 7.79% and Operating profit at -237.13% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(9M) At CNY -315.51 MM has Grown at -1,372.99%
ROCE(HY) Lowest at -9.09%
DEBT-EQUITY RATIO (HY) Highest at 16.27 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -35.73%, its profits have fallen by -437.8%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -35.73% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shang Gong Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Shang Gong Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shang Gong Group Co., Ltd.

-100.0%

1.09

47.98%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.79%

EBIT Growth (5y)

-237.13%

EBIT to Interest (avg)

1.33

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.85

Tax Ratio

19.34%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.38%

ROE (avg)

2.77%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.16

EV to EBIT

-19.43

EV to EBITDA

-69.85

EV to Capital Employed

1.15

EV to Sales

0.86

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.90%

ROE (Latest)

-9.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 111.65 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.81%

NET PROFIT(Q)

At CNY -24.89 MM has Grown at 57.37%

-21What is not working for the Company

NET PROFIT(9M)

At CNY -315.51 MM has Grown at -1,372.99%

ROCE(HY)

Lowest at -9.09%

DEBT-EQUITY RATIO (HY)

Highest at 16.27 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.37%

INTEREST(Q)

At CNY 17.69 MM has Grown at 30.17%

RAW MATERIAL COST(Y)

Grown by 9.66% (YoY

Here's what is working for Shang Gong Group Co., Ltd.

Operating Cash Flow

Highest at CNY 111.65 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

At CNY -24.89 MM has Grown at 57.37%

over average net sales of the previous four periods of CNY -58.38 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 2.81%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Shang Gong Group Co., Ltd.

Interest

At CNY 17.69 MM has Grown at 30.17%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 16.27 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 3.37% and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 9.66% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales