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

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 19.77% and Operating profit at 8.88% 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 19.77% and Operating profit at 8.88% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at CNY 392.61 MM
ROCE(HY) Lowest at 7.92%
DEBT-EQUITY RATIO (HY) Highest at 156.68 %

Below par performance in long term as well as near term

Along with generating -28.53% 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.

-21.24%

-0.16

36.00%

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)

21.10%

EBIT Growth (5y)

7.69%

EBIT to Interest (avg)

5.01

Debt to EBITDA (avg)

3.35

Net Debt to Equity (avg)

1.23

Sales to Capital Employed (avg)

0.89

Tax Ratio

18.94%

Dividend Payout Ratio

50.64%

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

1.91

EV to EBIT

25.08

EV to EBITDA

15.68

EV to Capital Employed

1.39

EV to Sales

1.18

PEG Ratio

Dividend Yield

2.77%

ROCE (Latest)

5.52%

ROE (Latest)

7.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 630.04 MM

NET SALES(HY)

At CNY 4,939.39 MM has Grown at 26.82%

RAW MATERIAL COST(Y)

Fallen by -0.62% (YoY

CASH AND EQV(HY)

Highest at CNY 2,843.96 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.08 times

PRE-TAX PROFIT(Q)

Highest at CNY 144.9 MM

-9What is not working for the Company

NET PROFIT(HY)

At CNY 110.75 MM has Grown at -28.16%

ROCE(HY)

Lowest at 5.66%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,258.43

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

Operating Cash Flow

Highest at CNY 630.04 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 Sales

At CNY 4,939.39 MM has Grown at 26.82%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 144.9 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 2,843.96 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.08 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 -0.62% (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 Baolong Automotive Corp.

Interest Coverage Ratio

Lowest at 1,258.43

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 110.75 MM has Grown at -28.16%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)