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 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.

-26.76%

1.32

39.54%

China Shanghai Composite

13.33%

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)

7.14%

EBIT Growth (5y)

-233.83%

EBIT to Interest (avg)

1.33

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.87

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

2.18

EV to EBIT

-34.94

EV to EBITDA

-125.60

EV to Capital Employed

2.06

EV to Sales

1.54

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

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

20What is working for the Company

CASH AND EQV(HY)

Highest at CNY 3,795.26 MM

NET SALES(Q)

Highest at CNY 1,122.39 MM

PRE-TAX PROFIT(Q)

Highest at CNY 119.49 MM

NET PROFIT(Q)

Highest at CNY 77.02 MM

EPS(Q)

Highest at CNY 0.11

-4What is not working for the Company

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

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

Pre-Tax Profit

At CNY 119.49 MM has Grown at 277.91%

over average net sales of the previous four periods of CNY -67.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 77.02 MM has Grown at 185.58%

over average net sales of the previous four periods of CNY -90 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 1,122.39 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 119.49 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 77.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.11

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 3,795.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

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

Operating Cash Flow

Lowest at CNY -175.03 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY -113.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 3.02 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio