Shanghai Moons' Electric Co., Ltd. (603728) 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 Moons' Electric Co., Ltd.

Why is Shanghai Moons' Electric Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.23% and Operating profit at -22.97% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 182.73 MM
INTEREST(Q) At CNY 3.75 MM has Grown at 40.6%
INTEREST COVERAGE RATIO(Q) Lowest at 569.59

With ROE of 2.21%, it has a very expensive valuation with a 11.30 Price to Book Value

Over the past year, while the stock has generated a return of -15.52%, its profits have fallen by -48.6%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -15.52% 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 Electronics & Appliances)

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

Is Shanghai Moons' Electric Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shanghai Moons' Electric Co., Ltd.

-20.4%

0.69

45.83%

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)

4.23%

EBIT Growth (5y)

-22.97%

EBIT to Interest (avg)

26.75

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

0.79

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

12.90%

Pledged Shares

Institutional Holding

ROCE (avg)

9.50%

ROE (avg)

7.58%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

512

Industry P/E

Price to Book Value

11.30

EV to EBIT

899.17

EV to EBITDA

234.28

EV to Capital Employed

12.67

EV to Sales

13.46

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

1.41%

ROE (Latest)

2.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

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

7What is working for the Company

NET SALES(Q)

Highest at CNY 728.54 MM

RAW MATERIAL COST(Y)

Fallen by -5.15% (YoY

CASH AND EQV(HY)

Highest at CNY 1,623.74 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.88 times

PRE-TAX PROFIT(Q)

At CNY 24.16 MM has Grown at 78.58%

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 182.73 MM

INTEREST(Q)

At CNY 3.75 MM has Grown at 40.6%

INTEREST COVERAGE RATIO(Q)

Lowest at 569.59

DEBT-EQUITY RATIO (HY)

Highest at -6.55 %

OPERATING PROFIT MARGIN(Q)

Lowest at 2.93 %

Here's what is working for Shanghai Moons' Electric Co., Ltd.

Net Sales

Highest at CNY 728.54 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

At CNY 728.54 MM has Grown at 18.45%

over average net sales of the previous four periods of CNY 615.06 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 24.16 MM has Grown at 78.58%

over average net sales of the previous four periods of CNY 13.53 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,623.74 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.88 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 -5.15% (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 Moons' Electric Co., Ltd.

Interest

At CNY 3.75 MM has Grown at 40.6%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 569.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 182.73 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit Margin

Lowest at 2.93 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -6.55 %

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