Why is Shanghai Join Buy Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 0%
- The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward
2
Poor long term growth as Net Sales has grown by an annual rate of 2.89% and Operating profit at -9.80% over the last 5 years
3
Negative results in Mar 25
- ROCE(HY) Lowest at 2.96%
- OPERATING PROFIT(Q) Lowest at CNY -8.55 MM
- OPERATING PROFIT MARGIN(Q) Lowest at -37.73 %
4
With ROE of 2.75%, it has a very expensive valuation with a 2.21 Price to Book Value
- Over the past year, while the stock has generated a return of -7.02%, its profits have fallen by -17.5%
5
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -7.02% returns
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 Retailing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Shanghai Join Buy Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Shanghai Join Buy Co., Ltd.
-7.02%
1.26
40.03%
China Shanghai Composite
14.77%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
2.89%
EBIT Growth (5y)
-9.80%
EBIT to Interest (avg)
-28.43
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.28
Sales to Capital Employed (avg)
0.06
Tax Ratio
0.02%
Dividend Payout Ratio
30.53%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
4.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
80
Industry P/E
Price to Book Value
2.21
EV to EBIT
-101.70
EV to EBITDA
-973.53
EV to Capital Employed
2.68
EV to Sales
32.74
PEG Ratio
NA
Dividend Yield
0.38%
ROCE (Latest)
-2.64%
ROE (Latest)
2.75%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
5What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at -26.91 %
RAW MATERIAL COST(Y)
Fallen by -29.8% (YoY
CASH AND EQV(HY)
Highest at CNY 858.48 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 4.21%
-5What is not working for the Company
ROCE(HY)
Lowest at 2.96%
OPERATING PROFIT(Q)
Lowest at CNY -8.55 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -37.73 %
PRE-TAX PROFIT(Q)
At CNY -6.43 MM has Fallen at -38.66%
Here's what is working for Shanghai Join Buy Co., Ltd.
Debt-Equity Ratio
Lowest at -26.91 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Cash and Eqv
Highest at CNY 858.48 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 4.21%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -29.8% (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 Join Buy Co., Ltd.
Operating Profit
Lowest at CNY -8.55 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at -37.73 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
At CNY -6.43 MM has Fallen at -38.66%
over average net sales of the previous four periods of CNY -4.63 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)






