Shanghai AJ Group Co., Ltd. (600643) 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

Shanghai AJ Group Co., Ltd.

Why is Shanghai AJ Group Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.84%

Poor long term growth as Net Sales has grown by an annual rate of -16.70% and Operating profit at -39.98%

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

OPERATING CASH FLOW(Y) Lowest at CNY 921.43 MM
NET PROFIT(HY) At CNY 94.96 MM has Grown at -28.38%
ROCE(HY) Lowest at -4.82%

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 -2.91%, its profits have fallen by -634%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.91% 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 Realty)

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

Is Shanghai AJ Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai AJ Group Co., Ltd.

-18.52%

0.38

41.42%

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)

-19.40%

EBIT Growth (5y)

-174.99%

EBIT to Interest (avg)

4.97

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

4.22%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

16.86%

ROE (avg)

5.84%

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

0.66

EV to EBIT

-9.61

EV to EBITDA

159.86

EV to Capital Employed

0.61

EV to Sales

3.42

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.30%

ROE (Latest)

-19.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

Bullish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -83.74% (YoY

PRE-TAX PROFIT(Q)

At CNY 8.42 MM has Grown at 101.38%

NET PROFIT(Q)

At CNY 7.9 MM has Grown at 101.64%

-30What is not working for the Company

NET SALES(HY)

At CNY 338.58 MM has Grown at -53.35%

NET PROFIT(HY)

At CNY -2,101.83 MM has Grown at -206.35%

INTEREST(HY)

At CNY 75.42 MM has Grown at 24.57%

OPERATING CASH FLOW(Y)

Lowest at CNY 765.42 MM

ROCE(HY)

Lowest at -18.51%

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.09 times

DEBT-EQUITY RATIO (HY)

Highest at 79.51 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.44 times

Here's what is working for Shanghai AJ Group Co., Ltd.

Pre-Tax Profit

At CNY 8.42 MM has Grown at 101.38%

over average net sales of the previous four periods of CNY -611.4 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 7.9 MM has Grown at 101.64%

over average net sales of the previous four periods of CNY -480.49 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -83.74% (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 Shanghai AJ Group Co., Ltd.

Net Sales

At CNY 338.58 MM has Grown at -53.35%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 75.42 MM has Grown at 24.57%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 10.09 times 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 Cash Flow

Lowest at CNY 765.42 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 79.51 %

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 0.44 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio