Shanghai New World Corp. Ltd. (600628) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shanghai New World Corp. Ltd.

Why is Shanghai New World Corp. Ltd. ?

Poor Management Efficiency with a low ROCE of 1.96%

The company has been able to generate a Return on Capital Employed (avg) of 1.96% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -0.10% and Operating profit at 27.28% over the last 5 years

Flat results in Mar 25

INTEREST COVERAGE RATIO(Q) Lowest at 802.22
NET SALES(Q) Lowest at CNY 252.21 MM
OPERATING PROFIT(Q) Lowest at CNY 19.85 MM

With ROE of 1.60%, it has a fair valuation with a 1.12 Price to Book Value

Over the past year, while the stock has generated a return of -29.80%, its profits have risen by 73.4% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 0.5

Below par performance in long term as well as near term

Along with generating -29.80% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanghai New World Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Shanghai New World Corp. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai New World Corp. Ltd.

-29.8%

0.90

36.35%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.10%

EBIT Growth (5y)

27.28%

EBIT to Interest (avg)

2.26

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

0.22

Tax Ratio

34.65%

Dividend Payout Ratio

36.93%

Pledged Shares

Institutional Holding

ROCE (avg)

1.96%

ROE (avg)

1.20%

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

1.12

EV to EBIT

39.54

EV to EBITDA

13.75

EV to Capital Employed

1.18

EV to Sales

3.03

PEG Ratio

0.95

Dividend Yield

0.54%

ROCE (Latest)

2.99%

ROE (Latest)

1.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

13What is working for the Company

NET PROFIT(HY)

At CNY 21.67 MM has Grown at 267.43%

ROCE(HY)

Highest at 1.45%

DEBT-EQUITY RATIO (HY)

Lowest at -35.35 %

RAW MATERIAL COST(Y)

Fallen by -5.56% (YoY

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 802.22

NET SALES(Q)

Lowest at CNY 252.21 MM

OPERATING PROFIT(Q)

Lowest at CNY 19.85 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.87 %

PRE-TAX PROFIT(Q)

Lowest at CNY 21.38 MM

NET PROFIT(Q)

Fallen at -33.95%

Here's what is working for Shanghai New World Corp. Ltd.

Debt-Equity Ratio

Lowest at -35.35 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -5.56% (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 New World Corp. Ltd.

Interest Coverage Ratio

Lowest at 802.22 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 252.21 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 19.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.87 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 21.38 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -35.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -33.95%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)