ScoreWhy is Shanghai Morn Electric Equipment Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.23%
- The company has been able to generate a Return on Capital Employed (avg) of 2.23% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 33.01% and Operating profit at 43.43% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 2.53% signifying low profitability per unit of shareholders funds
3
The company has declared negative results in Mar'2025 after 3 consecutive positive quarters
- INTEREST(HY) At CNY 14.79 MM has Grown at 41.65%
- OPERATING CASH FLOW(Y) Lowest at CNY -122.16 MM
- ROCE(HY) Lowest at 1.72%
4
With ROE of 2.79%, it has a very expensive valuation with a 3.81 Price to Book Value
- Over the past year, while the stock has generated a return of 33.09%, its profits have risen by 5.6% ; the PEG ratio of the company is 24.3
- At the current price, the company has a high dividend yield of 0.1
Real-Time Research ReportHow 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 Morn Electric Equipment Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Shanghai Morn Electric Equipment Co., Ltd.
-100.0%
1.66
51.56%
China Shanghai Composite
13.33%
0.90
14.74%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
33.01%
EBIT Growth (5y)
43.43%
EBIT to Interest (avg)
1.24
Debt to EBITDA (avg)
6.29
Net Debt to Equity (avg)
0.70
Sales to Capital Employed (avg)
0.88
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
24.57%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.23%
ROE (avg)
2.53%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
136
Industry P/E
Price to Book Value
3.81
EV to EBIT
127.48
EV to EBITDA
46.99
EV to Capital Employed
2.47
EV to Sales
2.31
PEG Ratio
24.34
Dividend Yield
0.14%
ROCE (Latest)
1.94%
ROE (Latest)
2.79%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
NET SALES(HY)
At CNY 868.89 MM has Grown at 19.05%
RAW MATERIAL COST(Y)
Fallen by -91.94% (YoY
CASH AND EQV(HY)
Highest at CNY 454.8 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 8.07 times
PRE-TAX PROFIT(Q)
Highest at CNY 10.12 MM
-30What is not working for the Company
INTEREST(HY)
At CNY 14.79 MM has Grown at 41.65%
OPERATING CASH FLOW(Y)
Lowest at CNY -122.16 MM
ROCE(HY)
Lowest at 1.72%
INTEREST COVERAGE RATIO(Q)
Lowest at 199.21
DEBT-EQUITY RATIO
(HY)
Highest at 89.57 %
OPERATING PROFIT(Q)
Lowest at CNY 14.77 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 3.5 %
NET PROFIT(Q)
Lowest at CNY 1.34 MM
EPS(Q)
Lowest at CNY 0
Here's what is working for Shanghai Morn Electric Equipment Co., Ltd.
Net Sales
At CNY 868.89 MM has Grown at 19.05%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
Highest at CNY 10.12 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Pre-Tax Profit
At CNY 10.12 MM has Grown at 90.49%
over average net sales of the previous four periods of CNY 5.31 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Cash and Eqv
Highest at CNY 454.8 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 8.07 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -91.94% (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 Morn Electric Equipment Co., Ltd.
Interest
At CNY 14.79 MM has Grown at 41.65%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Profit
At CNY 1.34 MM has Fallen at -62.1%
over average net sales of the previous four periods of CNY 3.54 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Operating Cash Flow
Lowest at CNY -122.16 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest Coverage Ratio
Lowest at 199.21
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 14.77 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 3.5 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
Lowest at CNY 1.34 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY 0
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Debt-Equity Ratio
Highest at 89.57 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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