Shanghai Construction Group Co., Ltd. (600170) 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 Construction Group Co., Ltd.

Why is Shanghai Construction Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.56%

The company has been able to generate a Return on Capital Employed (avg) of 6.56% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -3.31% and Operating profit at -13.24% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 8.38% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -3.31% and Operating profit at -13.24% over the last 5 years

The company has declared negative results for the last 6 consecutive quarters

INTEREST(HY) At CNY 1,400.78 MM has Grown at 16.85%
PRE-TAX PROFIT(Q) At CNY -20.67 MM has Fallen at -105.29%
NET PROFIT(Q) At CNY 83.34 MM has Fallen at -65%

With ROE of 3.21%, it has a very expensive valuation with a 0.65 Price to Book Value

Over the past year, while the stock has generated a return of -35.53%, its profits have fallen by -40%

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 Construction)

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

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

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shanghai Construction Group Co., Ltd.

-31.38%

-0.04

33.03%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.31%

EBIT Growth (5y)

-13.24%

EBIT to Interest (avg)

1.27

Debt to EBITDA (avg)

4.36

Net Debt to Equity (avg)

0.75

Sales to Capital Employed (avg)

2.02

Tax Ratio

43.50%

Dividend Payout Ratio

45.69%

Pledged Shares

Institutional Holding

ROCE (avg)

6.14%

ROE (avg)

8.38%

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

0.65

EV to EBIT

14.73

EV to EBITDA

7.08

EV to Capital Employed

0.78

EV to Sales

0.18

PEG Ratio

Dividend Yield

0.44%

ROCE (Latest)

5.28%

ROE (Latest)

3.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -20.64% (YoY

CASH AND EQV(HY)

Highest at CNY 169,345.74 MM

-30What is not working for the Company

INTEREST(HY)

At CNY 1,400.78 MM has Grown at 16.85%

PRE-TAX PROFIT(Q)

At CNY -20.67 MM has Fallen at -105.29%

NET PROFIT(Q)

At CNY 83.34 MM has Fallen at -65%

OPERATING CASH FLOW(Y)

Lowest at CNY 9,709.12 MM

ROCE(HY)

Lowest at 2.99%

NET SALES(Q)

Lowest at CNY 46,940.05 MM

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

Cash and Eqv

Highest at CNY 169,345.74 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -20.64% (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 Construction Group Co., Ltd.

Pre-Tax Profit

At CNY -20.67 MM has Fallen at -105.29%

over average net sales of the previous four periods of CNY 390.62 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 83.34 MM has Fallen at -65%

over average net sales of the previous four periods of CNY 238.13 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1,400.78 MM has Grown at 16.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 46,940.05 MM has Fallen at -12.58%

over average net sales of the previous four periods of CNY 53,695.76 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 9,709.12 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 46,940.05 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)