Shanghai Holystar Information Technology Co., Ltd. (688330) 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 Holystar Information Technology Co., Ltd.

Why is Shanghai Holystar Information Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 16.29%

The company has been able to generate a Return on Capital Employed (avg) of 16.29% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -9.69% and Operating profit at -5.84% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 8.32% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -9.69% and Operating profit at -5.84% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

INTEREST(HY) At CNY 1.12 MM has Grown at 67.02%
NET SALES(9M) At CNY 571.44 MM has Grown at -14.15%
PRE-TAX PROFIT(Q) At CNY 23.96 MM has Fallen at -60.64%

With ROE of 4.55%, it has a very attractive valuation with a 1.10 Price to Book Value

Over the past year, while the stock has generated a return of -6.53%, its profits have fallen by -0%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanghai Holystar Information Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

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

Is Shanghai Holystar Information Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Holystar Information Technology Co., Ltd.

-6.53%

1.57

52.35%

China Shanghai Composite

3.23%

0.22

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-9.69%

EBIT Growth (5y)

-5.84%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.45

Sales to Capital Employed (avg)

0.22

Tax Ratio

14.36%

Dividend Payout Ratio

10.01%

Pledged Shares

Institutional Holding

ROCE (avg)

12.23%

ROE (avg)

8.32%

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

1.10

EV to EBIT

17.17

EV to EBITDA

15.71

EV to Capital Employed

1.15

EV to Sales

5.63

PEG Ratio

Dividend Yield

2.33%

ROCE (Latest)

6.72%

ROE (Latest)

4.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 752.91 MM

ROCE(HY)

Highest at 19.66%

NET SALES(Q)

Highest at CNY 322.07 MM

-30What is not working for the Company

INTEREST(HY)

At CNY 1.12 MM has Grown at 67.02%

NET SALES(9M)

At CNY 571.44 MM has Grown at -14.15%

PRE-TAX PROFIT(Q)

At CNY 23.96 MM has Fallen at -60.64%

NET PROFIT(Q)

At CNY 19.91 MM has Fallen at -61.33%

RAW MATERIAL COST(Y)

Grown by 55.43% (YoY

CASH AND EQV(HY)

Lowest at CNY 3,503.65 MM

DEBT-EQUITY RATIO (HY)

Highest at -34.82 %

Here's what is working for Shanghai Holystar Information Technology Co., Ltd.

Net Sales

At CNY 322.07 MM has Grown at 128.2%

over average net sales of the previous four periods of CNY 141.14 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 752.91 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 322.07 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Shanghai Holystar Information Technology Co., Ltd.

Interest

At CNY 1.12 MM has Grown at 67.02%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 23.96 MM has Fallen at -60.64%

over average net sales of the previous four periods of CNY 60.87 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 19.91 MM has Fallen at -61.33%

over average net sales of the previous four periods of CNY 51.49 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Cash and Eqv

Lowest at CNY 3,503.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -34.82 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 55.43% (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

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