Shanghai Chinafortune Co., Ltd. (600621) 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 Chinafortune Co., Ltd.

Why is Shanghai Chinafortune Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 6.37%

Poor long term growth as Net Sales has grown by an annual rate of 11.80% and Operating profit at 26.40%
The company has been able to generate a Return on Equity (avg) of 6.37% signifying low profitability per unit of shareholders funds

Positive results in Mar 25

NET PROFIT(HY) At CNY 198.88 MM has Grown at 377.69%
OPERATING CASH FLOW(Y) Highest at CNY 5,573.4 MM
NET SALES(HY) At CNY 1,678.3 MM has Grown at 24.22%

With ROE of 4.20%, it has a expensive valuation with a 1.92 Price to Book Value

Over the past year, while the stock has generated a return of -4.72%, its profits have fallen by -9%
At the current price, the company has a high dividend yield of 0.7

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.72% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanghai Chinafortune Co., Ltd. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Shanghai Chinafortune Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shanghai Chinafortune Co., Ltd.

-4.72%

0.46

32.31%

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)

11.80%

EBIT Growth (5y)

26.40%

EBIT to Interest (avg)

2.54

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

9.21%

Dividend Payout Ratio

30.20%

Pledged Shares

Institutional Holding

ROCE (avg)

28,701.88%

ROE (avg)

6.37%

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

1.92

EV to EBIT

2.51

EV to EBITDA

1.99

EV to Capital Employed

-0.36

EV to Sales

0.73

PEG Ratio

Dividend Yield

0.66%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

4.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

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

14What is working for the Company

NET PROFIT(HY)

At CNY 198.88 MM has Grown at 377.69%

OPERATING CASH FLOW(Y)

Highest at CNY 5,573.4 MM

NET SALES(HY)

At CNY 1,678.3 MM has Grown at 24.22%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -59.89% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3,008.72%

PRE-TAX PROFIT(Q)

Highest at CNY 154.52 MM

-4What is not working for the Company

NET SALES(Q)

At CNY 663.33 MM has Fallen at -12.58%

CASH AND EQV(HY)

Lowest at CNY 15,585.13 MM

DEBT-EQUITY RATIO (HY)

Highest at 249.71 %

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

Net Profit

At CNY 198.88 MM has Grown at 377.69%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 5,573.4 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 154.52 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 154.52 MM has Grown at 64.61%

over average net sales of the previous four periods of CNY 93.87 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 3,008.72%

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 -59.89% (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 Chinafortune Co., Ltd.

Net Sales

At CNY 663.33 MM has Fallen at -12.58%

over average net sales of the previous four periods of CNY 758.76 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 15,585.13 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 249.71 %

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