Shanghai Mechanical & Electrical Industry Co., Ltd. (600835) 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 Mechanical & Electrical Industry Co., Ltd.

Why is Shanghai Mechanical & Electrical Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 61.81%

The company has been able to generate a Return on Capital Employed (avg) of 61.81% 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 -4.99% and Operating profit at -27.41% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 11.52% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -4.99% and Operating profit at -27.41% over the last 5 years

Negative results in Jun 26

OPERATING CASH FLOW(Y) Lowest at CNY 920.73 MM
NET PROFIT(9M) At CNY 490.27 MM has Grown at -27.32%
ROCE(HY) Lowest at 4.96%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 3.40% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -33.95% returns

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 Building Products)

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

Is Shanghai Mechanical & Electrical Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Mechanical & Electrical Industry Co., Ltd.

-33.51%

1.25

42.53%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.99%

EBIT Growth (5y)

-27.41%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.92

Sales to Capital Employed (avg)

1.46

Tax Ratio

12.02%

Dividend Payout Ratio

46.46%

Pledged Shares

Institutional Holding

ROCE (avg)

52.13%

ROE (avg)

11.52%

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

1.33

EV to EBIT

17.29

EV to EBITDA

10.23

EV to Capital Employed

5.47

EV to Sales

0.29

PEG Ratio

Dividend Yield

0.86%

ROCE (Latest)

31.62%

ROE (Latest)

8.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly Bullish

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

4What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.68 times

RAW MATERIAL COST(Y)

Fallen by -21.53% (YoY

CASH AND EQV(HY)

Highest at CNY 27,161.17 MM

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 920.73 MM

NET PROFIT(9M)

At CNY 490.27 MM has Grown at -27.32%

ROCE(HY)

Lowest at 4.96%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.62 times

INTEREST(Q)

At CNY 1.53 MM has Grown at 447.44%

PRE-TAX PROFIT(Q)

Lowest at CNY 160.21 MM

Here's what is working for Shanghai Mechanical & Electrical Industry Co., Ltd.

Inventory Turnover Ratio

Highest at 3.68 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at CNY 27,161.17 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -21.53% (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

Depreciation

At CNY 62.86 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CNY MM)

Here's what is not working for Shanghai Mechanical & Electrical Industry Co., Ltd.

Operating Cash Flow

Lowest at CNY 920.73 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

At CNY 1.53 MM has Grown at 447.44%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 2.62 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Profit

At CNY 490.27 MM has Grown at -27.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 160.21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)