Shanghai Kehua Bio-Engineering Co., Ltd. (002022) 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 Kehua Bio-Engineering Co., Ltd.

Why is Shanghai Kehua Bio-Engineering Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -20.09% and Operating profit at -184.19% over the last 5 years

Flat results in Mar 26

ROCE(HY) Lowest at -24.71%
DEBT-EQUITY RATIO (HY) Highest at -3.34 %
INTEREST(Q) At CNY 6.75 MM has Grown at 66.46%

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 -15.69%, its profits have fallen by -19.3%
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -15.69% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Pharmaceuticals & Biotechnology)

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

Is Shanghai Kehua Bio-Engineering Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai Kehua Bio-Engineering Co., Ltd.

-14.93%

-0.54

35.52%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-20.09%

EBIT Growth (5y)

-184.19%

EBIT to Interest (avg)

18.99

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

0.45

Tax Ratio

0.26%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

35.70%

ROE (avg)

21.44%

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

1.03

EV to EBIT

-3.19

EV to EBITDA

-4.28

EV to Capital Employed

1.03

EV to Sales

1.54

PEG Ratio

Dividend Yield

ROCE (Latest)

-32.22%

ROE (Latest)

-33.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Bearish

OBV

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

12What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 2.08 times

RAW MATERIAL COST(Y)

Fallen by -25.3% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.58 times

PRE-TAX PROFIT(Q)

Highest at CNY -42.14 MM

NET PROFIT(Q)

Highest at CNY -48.43 MM

EPS(Q)

Highest at CNY -0.1

-7What is not working for the Company

ROCE(HY)

Lowest at -24.71%

DEBT-EQUITY RATIO (HY)

Highest at -3.34 %

INTEREST(Q)

At CNY 6.75 MM has Grown at 66.46%

Here's what is working for Shanghai Kehua Bio-Engineering Co., Ltd.

Debtors Turnover Ratio

Highest at 2.08 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

Pre-Tax Profit

Highest at CNY -42.14 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 -42.14 MM has Grown at 79.24%

over average net sales of the previous four periods of CNY -203.03 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -48.43 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY -48.43 MM has Grown at 73.54%

over average net sales of the previous four periods of CNY -183.04 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 1.58 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -25.3% (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 Kehua Bio-Engineering Co., Ltd.

Interest

At CNY 6.75 MM has Grown at 66.46%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -3.34 % and Grown

In each half year 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