Shanghai Dragon Corp. (600630) 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 Dragon Corp.

Why is Shanghai Dragon Corp. ?

Poor Management Efficiency with a low ROCE of 1.70%

The company has been able to generate a Return on Capital Employed (avg) of 1.70% 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 -10.46% and Operating profit at 17.15% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 1.67% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -10.46% and Operating profit at 17.15% over the last 5 years

Flat results in Jun 26

OPERATING CASH FLOW(Y) Lowest at CNY 127.76 MM
PRE-TAX PROFIT(Q) At CNY 7.8 MM has Fallen at -57.47%
NET SALES(Q) At CNY 393.16 MM has Fallen at -15.44%

With ROE of 6.94%, it has a fair valuation with a 5.09 Price to Book Value

Over the past year, while the stock has generated a return of 5.92%, its profits have risen by 39.9% ; the PEG ratio of the company is 1.8

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 Footwear)

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

Is Shanghai Dragon Corp. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shanghai Dragon Corp.

8.34%

0.17

48.56%

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)

-10.46%

EBIT Growth (5y)

17.15%

EBIT to Interest (avg)

-5.88

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.67

Tax Ratio

23.04%

Dividend Payout Ratio

35.02%

Pledged Shares

Institutional Holding

ROCE (avg)

2.93%

ROE (avg)

1.67%

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

5.09

EV to EBIT

109.78

EV to EBITDA

48.11

EV to Capital Employed

6.75

EV to Sales

2.10

PEG Ratio

1.84

Dividend Yield

0.39%

ROCE (Latest)

6.15%

ROE (Latest)

6.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

8What is working for the Company

ROCE(HY)

Highest at 7.03%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.37 times

NET PROFIT(9M)

Higher at CNY 48.97 MM

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 127.76 MM

PRE-TAX PROFIT(Q)

At CNY 7.8 MM has Fallen at -57.47%

NET SALES(Q)

At CNY 393.16 MM has Fallen at -15.44%

NET PROFIT(Q)

At CNY 6.57 MM has Fallen at -51.04%

RAW MATERIAL COST(Y)

Grown by 26.7% (YoY

Here's what is working for Shanghai Dragon Corp.

Inventory Turnover Ratio

Highest at 4.37 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Shanghai Dragon Corp.

Pre-Tax Profit

At CNY 7.8 MM has Fallen at -57.47%

over average net sales of the previous four periods of CNY 18.34 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 127.76 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 393.16 MM has Fallen at -15.44%

over average net sales of the previous four periods of CNY 464.96 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Profit

At CNY 6.57 MM has Fallen at -51.04%

over average net sales of the previous four periods of CNY 13.41 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 26.7% (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