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)

Poor long term growth as Net Sales has grown by an annual rate of -12.66% and Operating profit at 15.68% over the last 5 years

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 187.28 MM
NET PROFIT(HY) At CNY 11.24 MM has Grown at -40.93%
RAW MATERIAL COST(Y) Grown by 19.51% (YoY)

With ROE of 2.73%, it has a expensive valuation with a 4.65 Price to Book Value

Over the past year, while the stock has generated a return of -7.64%, its profits have fallen by -55.9%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -7.64% returns

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai Dragon Corp.

-15.73%

0.02

33.47%

China Shanghai Composite

13.33%

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)

-12.66%

EBIT Growth (5y)

15.68%

EBIT to Interest (avg)

-8.49

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.55

Tax Ratio

15.93%

Dividend Payout Ratio

40.38%

Pledged Shares

Institutional Holding

ROCE (avg)

1.70%

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

170

Industry P/E

Price to Book Value

4.65

EV to EBIT

115.90

EV to EBITDA

36.81

EV to Capital Employed

5.27

EV to Sales

2.04

PEG Ratio

Dividend Yield

0.45%

ROCE (Latest)

4.55%

ROE (Latest)

2.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

2What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 12.58 MM has Grown at 70.13%

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 187.28 MM

NET PROFIT(HY)

At CNY 11.24 MM has Grown at -40.93%

RAW MATERIAL COST(Y)

Grown by 19.51% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.16 times

OPERATING PROFIT(Q)

Lowest at CNY -15.43 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.39 %

Here's what is working for Shanghai Dragon Corp.

Pre-Tax Profit

At CNY 12.58 MM has Grown at 70.13%

over average net sales of the previous four periods of CNY 7.39 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

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

Net Profit

At CNY 11.24 MM has Grown at -40.93%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 187.28 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)

Operating Profit

Lowest at CNY -15.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.39 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 5.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 19.51% (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