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 hold?

Overall Portfolio exposure to Shanghai Dragon Corp. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Shanghai Dragon Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai Dragon Corp.

17.61%

0.02

33.47%

China Shanghai Composite

21.43%

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)

-10.46%

EBIT Growth (5y)

17.15%

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)

1.67

Tax Ratio

15.93%

Dividend Payout Ratio

35.02%

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

Industry P/E

Price to Book Value

4.41

EV to EBIT

94.36

EV to EBITDA

41.35

EV to Capital Employed

5.80

EV to Sales

1.80

PEG Ratio

1.59

Dividend Yield

0.45%

ROCE (Latest)

6.15%

ROE (Latest)

6.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

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

17What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -23.61 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.29 times

PRE-TAX PROFIT(Q)

Highest at CNY 30.09 MM

NET PROFIT(Q)

Highest at CNY 24.75 MM

EPS(Q)

Highest at CNY 0.06

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 141.42 MM

RAW MATERIAL COST(Y)

Grown by 7.15% (YoY

Here's what is working for Shanghai Dragon Corp.

Pre-Tax Profit

Highest at CNY 30.09 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 30.09 MM has Grown at 80.99%

over average net sales of the previous four periods of CNY 16.63 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 24.75 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 24.75 MM has Grown at 110.37%

over average net sales of the previous four periods of CNY 11.76 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -23.61 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.29 times

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.

Operating Cash Flow

Lowest at CNY 141.42 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Raw Material Cost

Grown by 7.15% (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