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

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 7.14% and Operating profit at -233.83% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at CNY -175.03 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 3.02 times
OPERATING PROFIT(Q) Lowest at CNY -113.06 MM

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 -21.41%, 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 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -21.41% returns

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 Industrial Manufacturing)

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shang Gong Group Co., Ltd.

-18.6%

1.32

39.54%

China Shanghai Composite

23.91%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.36%

EBIT Growth (5y)

-217.76%

EBIT to Interest (avg)

1.33

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.89

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

0.84

EV to EBIT

-9.11

EV to EBITDA

-20.73

EV to Capital Employed

0.85

EV to Sales

0.58

PEG Ratio

Dividend Yield

ROCE (Latest)

-9.38%

ROE (Latest)

-3.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

12What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 5.87 MM has Grown at 152.12%

RAW MATERIAL COST(Y)

Fallen by -6.44% (YoY

CASH AND EQV(HY)

Highest at CNY 4,050.09 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.82 times

NET PROFIT(Q)

At CNY 1.17 MM has Grown at 103.7%

-2What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -245.6 MM

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

Pre-Tax Profit

At CNY 5.87 MM has Grown at 152.12%

over average net sales of the previous four periods of CNY -11.27 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1.17 MM has Grown at 103.7%

over average net sales of the previous four periods of CNY -31.53 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 4,050.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.82 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -6.44% (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 Shang Gong Group Co., Ltd.

Operating Cash Flow

Lowest at CNY -245.6 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Non Operating Income

Highest at CNY 6.7 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income