Shanghai M&G Stationery, Inc. (603899) 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 M&G Stationery, Inc.

Why is Shanghai M&G Stationery, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 15.82% and Operating profit at 2.53% over the last 5 years

Flat results in Sep 25

INTEREST(HY) At CNY 14.3 MM has Grown at 8.38%
ROCE(HY) Lowest at 15.09%
DEBTORS TURNOVER RATIO(HY) Lowest at 5.09 times

With ROE of 15.36%, it has a very expensive valuation with a 2.98 Price to Book Value

Over the past year, while the stock has generated a return of -3.09%, its profits have fallen by -19.5%
At the current price, the company has a high dividend yield of 3.6

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.09% 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 Miscellaneous)

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

Is Shanghai M&G Stationery, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai M&G Stationery, Inc.

-28.24%

-0.84

28.48%

China Shanghai Composite

21.43%

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)

11.30%

EBIT Growth (5y)

-1.34%

EBIT to Interest (avg)

84.33

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.67

Sales to Capital Employed (avg)

2.64

Tax Ratio

20.26%

Dividend Payout Ratio

69.90%

Pledged Shares

Institutional Holding

ROCE (avg)

56.69%

ROE (avg)

20.25%

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

2.13

EV to EBIT

9.77

EV to EBITDA

7.48

EV to Capital Employed

4.43

EV to Sales

0.55

PEG Ratio

Dividend Yield

4.52%

ROCE (Latest)

45.38%

ROE (Latest)

13.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -8.14% (YoY

CASH AND EQV(HY)

Highest at CNY 15,042.4 MM

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 2,228.68 MM

ROCE(HY)

Lowest at 14.12%

INTEREST COVERAGE RATIO(Q)

Lowest at 4,794.05

INVENTORY TURNOVER RATIO(HY)

Lowest at 13.21 times

OPERATING PROFIT(Q)

Lowest at CNY 335.52 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.07 %

Here's what is working for Shanghai M&G Stationery, Inc.

Cash and Eqv

Highest at CNY 15,042.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -8.14% (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 M&G Stationery, Inc.

Operating Cash Flow

Lowest at CNY 2,228.68 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Lowest at 4,794.05

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 335.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 13.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 0.22 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income