Shanghai Great Wisdom Co., Ltd. (601519) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shanghai Great Wisdom Co., Ltd.

Why is Shanghai Great Wisdom Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.40%

The company has been able to generate a Return on Capital Employed (avg) of 4.40% 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 4.32% and Operating profit at -273.30% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 11.56%, its profits have risen by 79.5%

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 Computers - Software & Consulting)

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

Is Shanghai Great Wisdom Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Great Wisdom Co., Ltd.

11.56%

2.15

55.16%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.32%

EBIT Growth (5y)

-273.30%

EBIT to Interest (avg)

-32.07

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.86

Sales to Capital Employed (avg)

0.45

Tax Ratio

4.40%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.40%

ROE (avg)

4.13%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

22.00

EV to EBIT

-191.76

EV to EBITDA

-278.88

EV to Capital Employed

122.73

EV to Sales

36.26

PEG Ratio

Dividend Yield

ROCE (Latest)

-64.00%

ROE (Latest)

-4.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

OPERATING PROFIT(Q)

Highest at CNY -32.07 MM

RAW MATERIAL COST(Y)

Fallen by -7.31% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2,550.18%

DEBTORS TURNOVER RATIO(HY)

Highest at 7.25%

PRE-TAX PROFIT(Q)

Highest at CNY 3.48 MM

NET PROFIT(Q)

At CNY 2.33 MM has Grown at 104.74%

EPS(Q)

Highest at CNY 0

-8What is not working for the Company

INTEREST(9M)

At CNY 2.47 MM has Grown at 14.12%

OPERATING CASH FLOW(Y)

Lowest at CNY -79.33 MM

NET SALES(Q)

At CNY 163.98 MM has Fallen at -14.28%

CASH AND EQV(HY)

Lowest at CNY 2,539.63 MM

Here's what is working for Shanghai Great Wisdom Co., Ltd.

Operating Profit

Highest at CNY -32.07 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 3.48 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 3.48 MM has Grown at 106.98%

over average net sales of the previous four periods of CNY -49.88 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 2.33 MM has Grown at 104.74%

over average net sales of the previous four periods of CNY -49.24 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 2,550.18%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 7.25%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -7.31% (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 Great Wisdom Co., Ltd.

Interest

At CNY 2.47 MM has Grown at 14.12%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 163.98 MM has Fallen at -14.28%

over average net sales of the previous four periods of CNY 191.3 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY -79.33 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 2,539.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents