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 long term growth as Net Sales has grown by an annual rate of -2.72% and Operating profit at -17.28% over the last 5 years

Negative results in Sep 25

INTEREST(HY) At CNY 1.98 MM has Grown at 31.44%
OPERATING CASH FLOW(Y) Lowest at CNY 1,116.1 MM
ROCE(HY) Lowest at 6.64%

With ROE of 8.74%, it has a fair valuation with a 1.76 Price to Book Value

Over the past year, while the stock has generated a return of 12.31%, its profits have fallen by -20.1%
At the current price, the company has a high dividend yield of 1.4

Underperformed the market in the last 1 year

The stock has generated a return of 12.31% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanghai Mechanical & Electrical Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Mechanical & Electrical Industry Co., Ltd.

-4.62%

2.13

47.97%

China Shanghai Composite

13.33%

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)

-2.72%

EBIT Growth (5y)

-17.28%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.92

Sales to Capital Employed (avg)

1.56

Tax Ratio

12.10%

Dividend Payout Ratio

45.83%

Pledged Shares

Institutional Holding

ROCE (avg)

61.81%

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

1.76

EV to EBIT

22.21

EV to EBITDA

14.10

EV to Capital Employed

20.09

EV to Sales

0.56

PEG Ratio

Dividend Yield

1.38%

ROCE (Latest)

90.45%

ROE (Latest)

8.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.07% (YoY

CASH AND EQV(HY)

Highest at CNY 28,020.11 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.05 times

PRE-TAX PROFIT(Q)

Highest at CNY 278.89 MM

-12What is not working for the Company

INTEREST(HY)

At CNY 1.98 MM has Grown at 31.44%

OPERATING CASH FLOW(Y)

Lowest at CNY 1,116.1 MM

ROCE(HY)

Lowest at 6.64%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.63 times

OPERATING PROFIT(Q)

Lowest at CNY 157.13 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.98 %

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

Pre-Tax Profit

Highest at CNY 278.89 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 28,020.11 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.05 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 -2.07% (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 Mechanical & Electrical Industry Co., Ltd.

Interest

At CNY 1.98 MM has Grown at 31.44%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 1,116.1 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)

Operating Profit

Lowest at CNY 157.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 2.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio