Shanghai Ganglian E-Commerce Holdings Co., Ltd. (300226) 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 Ganglian E-Commerce Holdings Co., Ltd.

Why is Shanghai Ganglian E-Commerce Holdings Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -1.99% and Operating profit at -9.50% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 20.80% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.99% and Operating profit at -9.50% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY -688.59 MM
NET SALES(HY) At CNY 42,001.67 MM has Grown at -9.88%
RAW MATERIAL COST(Y) Grown by 79.55% (YoY)

With ROE of 17.35%, it has a expensive valuation with a 3.82 Price to Book Value

Over the past year, while the stock has generated a return of 7.92%, its profits have risen by 2.9% ; the PEG ratio of the company is 7.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanghai Ganglian E-Commerce Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Shanghai Ganglian E-Commerce Holdings Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Ganglian E-Commerce Holdings Co., Ltd.

9.86%

0.80

50.06%

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)

-1.99%

EBIT Growth (5y)

-9.50%

EBIT to Interest (avg)

5.24

Debt to EBITDA (avg)

3.81

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

7.91

Tax Ratio

19.16%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.62%

ROE (avg)

20.80%

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

3.82

EV to EBIT

33.56

EV to EBITDA

28.56

EV to Capital Employed

6.66

EV to Sales

0.10

PEG Ratio

7.72

Dividend Yield

ROCE (Latest)

19.85%

ROE (Latest)

17.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

7What is working for the Company

NET PROFIT(HY)

At CNY 115.36 MM has Grown at 46.38%

DEBTORS TURNOVER RATIO(HY)

Highest at 53.96 times

CASH AND EQV(HY)

Highest at CNY 37,538 MM

NET SALES(Q)

Highest at CNY 22,926.26 MM

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -688.59 MM

NET SALES(HY)

At CNY 42,001.67 MM has Grown at -9.88%

RAW MATERIAL COST(Y)

Grown by 79.55% (YoY

Here's what is working for Shanghai Ganglian E-Commerce Holdings Co., Ltd.

Net Profit

At CNY 115.36 MM has Grown at 46.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 53.96 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

Highest at CNY 22,926.26 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 37,538 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Shanghai Ganglian E-Commerce Holdings Co., Ltd.

Operating Cash Flow

Lowest at CNY -688.59 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 79.55% (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