Why is Shanghai National Center of Testing & Inspection ?
1
With ROE of 8.94%, it has a very attractive valuation with a 1.33 Price to Book Value
- Over the past year, while the stock has generated a return of 34.48%, its profits have risen by 8.8%
- At the current price, the company has a high dividend yield of 0.8
2
Market Beating performance in long term as well as near term
- Along with generating 34.48% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
How much should you buy?
- Overall Portfolio exposure to Shanghai National Center of Testing & Inspection should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Shanghai National Center of Testing & Inspection for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Shanghai National Center of Testing & Inspection
9.89%
1.04
50.88%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
16.34%
EBIT Growth (5y)
8.73%
EBIT to Interest (avg)
17.25
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.72
Sales to Capital Employed (avg)
0.28
Tax Ratio
13.93%
Dividend Payout Ratio
42.52%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
28.65%
ROE (avg)
10.63%
Valuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
1.33
EV to EBIT
6.27
EV to EBITDA
3.93
EV to Capital Employed
2.23
EV to Sales
1.85
PEG Ratio
NA
Dividend Yield
0.81%
ROCE (Latest)
35.52%
ROE (Latest)
8.94%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 168.24 MM
RAW MATERIAL COST(Y)
Fallen by -11.88% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 6.71%
NET SALES(Q)
Highest at CNY 80.56 MM
PRE-TAX PROFIT(Q)
Highest at CNY 28.05 MM
-3What is not working for the Company
OPERATING PROFIT(Q)
Lowest at CNY 26.26 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 32.6 %
Here's what is working for Shanghai National Center of Testing & Inspection
Operating Cash Flow
Highest at CNY 168.24 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
Highest at CNY 80.56 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Pre-Tax Profit
Highest at CNY 28.05 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Debtors Turnover Ratio
Highest at 6.71%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -11.88% (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 National Center of Testing & Inspection
Operating Profit
Lowest at CNY 26.26 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 32.6 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales






