Shanghai Baolong Automotive Corp. (603197) 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

Shanghai Baolong Automotive Corp.

Why is Shanghai Baolong Automotive Corp. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 19.63% and Operating profit at 11.68% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 11.73% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 19.63% and Operating profit at 11.68% over the last 5 years

DEBT-EQUITY RATIO (HY) Highest at 123.16 %
DEBTORS TURNOVER RATIO(HY) Lowest at 3.09%
RAW MATERIAL COST(Y) Grown by 19.34% (YoY)

With ROE of 9.94%, it has a expensive valuation with a 2.78 Price to Book Value

Over the past year, while the stock has generated a return of -11.56%, its profits have fallen by -5.6%
At the current price, the company has a high dividend yield of 1.6

Below par performance in long term as well as near term

Along with generating -11.56% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Auto Components & Equipments)

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

Is Shanghai Baolong Automotive Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai Baolong Automotive Corp.

-11.56%

-0.13

41.11%

China Shanghai Composite

14.77%

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)

19.63%

EBIT Growth (5y)

11.68%

EBIT to Interest (avg)

5.01

Debt to EBITDA (avg)

3.35

Net Debt to Equity (avg)

1.23

Sales to Capital Employed (avg)

0.90

Tax Ratio

18.94%

Dividend Payout Ratio

50.27%

Pledged Shares

Institutional Holding

ROCE (avg)

8.72%

ROE (avg)

11.73%

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

2.78

EV to EBIT

29.32

EV to EBITDA

17.64

EV to Capital Employed

1.77

EV to Sales

1.76

PEG Ratio

Dividend Yield

1.62%

ROCE (Latest)

6.03%

ROE (Latest)

9.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 475.99 MM

NET SALES(9M)

At CNY 5,722.51 MM has Grown at 20.62%

INTEREST COVERAGE RATIO(Q)

Highest at 1,018.95

CASH AND EQV(HY)

Highest at CNY 2,406.4 MM

PRE-TAX PROFIT(Q)

Highest at CNY 136.41 MM

-8What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 123.16 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.09%

RAW MATERIAL COST(Y)

Grown by 19.34% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 130.86 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.9 %

Here's what is working for Shanghai Baolong Automotive Corp.

Operating Cash Flow

Highest at CNY 475.99 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)

Interest Coverage Ratio

Highest at 1,018.95

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

At CNY 1,896.32 MM has Grown at 28.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 136.41 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 2,406.4 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 Shanghai Baolong Automotive Corp.

Debt-Equity Ratio

Highest at 123.16 % 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 3.09% 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

Operating Profit

Lowest at CNY 130.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.9 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 19.34% (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