Why is Shanghai Emperor of Cleaning Hi-Tech Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 3.09%
- The company has been able to generate a Return on Capital Employed (avg) of 3.09% 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 -4.02% and Operating profit at -31.15% over the last 5 years
3
The company has declared Negative results for the last 3 consecutive quarters
- NET PROFIT(HY) At CNY 4.35 MM has Grown at -80.04%
- INTEREST(HY) At CNY 5.94 MM has Grown at 27.23%
- NET SALES(HY) At CNY 236.96 MM has Grown at -16.57%
4
With ROE of 9.51%, it has a very expensive valuation with a 14.93 Price to Book Value
- Over the past year, while the stock has generated a return of 167.97%, its profits have risen by 83% ; the PEG ratio of the company is 1.9
- At the current price, the company has a high dividend yield of 0.1
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 Chemicals & Petrochemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Shanghai Emperor of Cleaning Hi-Tech Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Shanghai Emperor of Cleaning Hi-Tech Co., Ltd.
167.97%
4.05
60.44%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
-4.02%
EBIT Growth (5y)
-31.15%
EBIT to Interest (avg)
3.64
Debt to EBITDA (avg)
0.68
Net Debt to Equity (avg)
0.17
Sales to Capital Employed (avg)
0.43
Tax Ratio
10.81%
Dividend Payout Ratio
36.70%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.09%
ROE (avg)
4.00%
Valuation Key Factors 
Factor
Value
P/E Ratio
157
Industry P/E
Price to Book Value
14.93
EV to EBIT
3325.61
EV to EBITDA
356.73
EV to Capital Employed
16.92
EV to Sales
34.21
PEG Ratio
1.89
Dividend Yield
0.10%
ROCE (Latest)
0.51%
ROE (Latest)
9.51%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-32What is not working for the Company
NET PROFIT(HY)
At CNY 4.35 MM has Grown at -80.04%
INTEREST(HY)
At CNY 5.94 MM has Grown at 27.23%
NET SALES(HY)
At CNY 236.96 MM has Grown at -16.57%
OPERATING CASH FLOW(Y)
Lowest at CNY 23.12 MM
RAW MATERIAL COST(Y)
Grown by 12.12% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 21.15 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.3%
Here's what is not working for Shanghai Emperor of Cleaning Hi-Tech Co., Ltd.
Net Profit
At CNY 4.35 MM has Grown at -80.04%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest
At CNY 5.94 MM has Grown at 27.23%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Sales
At CNY 102.16 MM has Fallen at -19.37%
over average net sales of the previous four periods of CNY 126.7 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Operating Cash Flow
Lowest at CNY 23.12 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Sales
Lowest at CNY 102.16 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Debt-Equity Ratio
Highest at 21.15 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 3.3%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 12.12% (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






