Shanghai Highly (Group) Co., Ltd. (600619) 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 Highly (Group) Co., Ltd.

Why is Shanghai Highly (Group) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.85%

The company has been able to generate a Return on Capital Employed (avg) of 0.85% signifying low profitability per unit of total capital (equity and debt)

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 14.55% and Operating profit at 7.84% 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 1.47% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.55% and Operating profit at 7.84% over the last 5 years

Flat results in Sep 25

NET SALES(Q) At CNY 4,062.95 MM has Fallen at -19.42%
OPERATING CASH FLOW(Y) Lowest at CNY 633.85 MM
INTEREST(Q) At CNY 25.83 MM has Grown at 17.49%

With ROE of 1.13%, it has a fair valuation with a 3.40 Price to Book Value

Over the past year, while the stock has generated a return of 45.09%, its profits have risen by 365.9% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 0

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 Industrial Manufacturing)

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

Is Shanghai Highly (Group) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Highly (Group) Co., Ltd.

22.12%

3.86

60.97%

China Shanghai Composite

13.33%

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)

14.55%

EBIT Growth (5y)

7.84%

EBIT to Interest (avg)

0.26

Debt to EBITDA (avg)

5.83

Net Debt to Equity (avg)

0.87

Sales to Capital Employed (avg)

1.29

Tax Ratio

60.76%

Dividend Payout Ratio

41.27%

Pledged Shares

Institutional Holding

ROCE (avg)

0.85%

ROE (avg)

1.47%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

300

Industry P/E

Price to Book Value

3.40

EV to EBIT

148.38

EV to EBITDA

31.70

EV to Capital Employed

2.29

EV to Sales

1.32

PEG Ratio

0.82

Dividend Yield

0.05%

ROCE (Latest)

1.54%

ROE (Latest)

1.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

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

10What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 3.27 times

RAW MATERIAL COST(Y)

Fallen by -61.51% (YoY

CASH AND EQV(HY)

Highest at CNY 7,754.3 MM

NET PROFIT(Q)

Highest at CNY 21.95 MM

EPS(Q)

Highest at CNY 0.02

-11What is not working for the Company

NET SALES(Q)

At CNY 4,062.95 MM has Fallen at -19.42%

OPERATING CASH FLOW(Y)

Lowest at CNY 633.85 MM

INTEREST(Q)

At CNY 25.83 MM has Grown at 17.49%

INTEREST COVERAGE RATIO(Q)

Lowest at 378.58

OPERATING PROFIT(Q)

Lowest at CNY 97.8 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.41 %

Here's what is working for Shanghai Highly (Group) Co., Ltd.

Debtors Turnover Ratio

Highest at 3.27 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 Profit

Highest at CNY 21.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 7,754.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -61.51% (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 Highly (Group) Co., Ltd.

Net Sales

At CNY 4,062.95 MM has Fallen at -19.42%

over average net sales of the previous four periods of CNY 5,042.28 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 25.83 MM has Grown at 17.49%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 378.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 633.85 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 97.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.41 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales