Why is Shanghai Dragon Corp. ?
1
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)
2
Poor long term growth as Net Sales has grown by an annual rate of -13.65% and Operating profit at 19.92% over the last 5 years
3
Negative results in Mar 25
- NET PROFIT(HY) At CNY 20.38 MM has Grown at -44.84%
4
With ROE of 2.73%, it has a expensive valuation with a 4.63 Price to Book Value
- Over the past year, while the stock has generated a return of -4.51%, its profits have fallen by -55.9%
5
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 -4.51% returns
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, High Return
Absolute
Risk Adjusted
Volatility
Shanghai Dragon Corp.
-4.51%
0.64
40.43%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
-13.65%
EBIT Growth (5y)
19.92%
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)
1.53
Tax Ratio
15.93%
Dividend Payout Ratio
40.38%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.70%
ROE (avg)
1.67%
Valuation Key Factors 
Factor
Value
P/E Ratio
169
Industry P/E
Price to Book Value
4.63
EV to EBIT
115.34
EV to EBITDA
36.64
EV to Capital Employed
5.25
EV to Sales
2.03
PEG Ratio
NA
Dividend Yield
0.45%
ROCE (Latest)
4.55%
ROE (Latest)
2.73%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
8What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 1,159.54
RAW MATERIAL COST(Y)
Fallen by -3.36% (YoY
CASH AND EQV(HY)
Highest at CNY 906.31 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -17.34 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3.81%
PRE-TAX PROFIT(Q)
At CNY 23.25 MM has Grown at 94.59%
NET PROFIT(Q)
At CNY 18.15 MM has Grown at 81.56%
-7What is not working for the Company
NET PROFIT(HY)
At CNY 20.38 MM has Grown at -44.84%
Here's what is working for Shanghai Dragon Corp.
Interest Coverage Ratio
Highest at 1,159.54
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
At CNY 23.25 MM has Grown at 94.59%
over average net sales of the previous four periods of CNY 11.95 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 18.15 MM has Grown at 81.56%
over average net sales of the previous four periods of CNY 10 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Cash and Eqv
Highest at CNY 906.31 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -17.34 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3.81%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -3.36% (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






