Shanghai Fortune Techgroup Co., Ltd. (300493) 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 Fortune Techgroup Co., Ltd.

Why is Shanghai Fortune Techgroup Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.64%

The company has been able to generate a Return on Capital Employed (avg) of 6.64% 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 16.04% and Operating profit at 29.39% over the last 5 years

With ROE of 3.44%, it has a very expensive valuation with a 10.08 Price to Book Value

Over the past year, while the stock has generated a return of -39.00%, its profits have risen by 0.2% ; the PEG ratio of the company is 293.1
At the current price, the company has a high dividend yield of 0.2

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 13.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -39.00% 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 Other Electrical Equipment)

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

Is Shanghai Fortune Techgroup Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Fortune Techgroup Co., Ltd.

-37.21%

1.88

53.25%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.04%

EBIT Growth (5y)

29.39%

EBIT to Interest (avg)

17.90

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.81

Tax Ratio

7.99%

Dividend Payout Ratio

42.25%

Pledged Shares

Institutional Holding

ROCE (avg)

6.64%

ROE (avg)

4.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

293

Industry P/E

Price to Book Value

10.08

EV to EBIT

229.25

EV to EBITDA

185.90

EV to Capital Employed

9.98

EV to Sales

4.11

PEG Ratio

293.05

Dividend Yield

0.15%

ROCE (Latest)

4.35%

ROE (Latest)

3.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

14What is working for the Company

ROCE(HY)

Highest at 4.05%

INVENTORY TURNOVER RATIO(HY)

Highest at 8.14 times

INTEREST COVERAGE RATIO(Q)

Highest at 2,694.68

RAW MATERIAL COST(Y)

Fallen by -21.36% (YoY

CASH AND EQV(HY)

Highest at CNY 699.35 MM

NET SALES(Q)

Highest at CNY 787.55 MM

PRE-TAX PROFIT(Q)

Highest at CNY 20.69 MM

NET PROFIT(Q)

Highest at CNY 17 MM

-7What is not working for the Company

INTEREST(HY)

At CNY 1.99 MM has Grown at 13.24%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.83 times

Here's what is working for Shanghai Fortune Techgroup Co., Ltd.

Interest Coverage Ratio

Highest at 2,694.68

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Inventory Turnover Ratio

Highest at 8.14 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

Net Sales

Highest at CNY 787.55 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 20.69 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 20.69 MM has Grown at 84.06%

over average net sales of the previous four periods of CNY 11.24 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 17 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 17 MM has Grown at 66.17%

over average net sales of the previous four periods of CNY 10.23 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 699.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -21.36% (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

Here's what is not working for Shanghai Fortune Techgroup Co., Ltd.

Interest

At CNY 1.99 MM has Grown at 13.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 2.83 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio