Why is Shanghai Sanmao Enterprise (Group) Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 1.72%
- The company has been able to generate a Return on Capital Employed (avg) of 1.72% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 1.52% and Operating profit at -203.66% over the last 5 years
3
Flat results in Sep 25
- RAW MATERIAL COST(Y) Grown by 45.7% (YoY)
- NET SALES(Q) Lowest at CNY 292.53 MM
4
With ROE of 3.28%, it has a very expensive valuation with a 5.10 Price to Book Value
- Over the past year, while the stock has generated a return of 12.49%, its profits have risen by 102.1% ; the PEG ratio of the company is 1.5
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 Trading & Distributors)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Shanghai Sanmao Enterprise (Group) Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Shanghai Sanmao Enterprise (Group) Co., Ltd.
-5.88%
2.49
39.05%
China Shanghai Composite
13.33%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
1.52%
EBIT Growth (5y)
-203.66%
EBIT to Interest (avg)
-0.07
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.50
Sales to Capital Employed (avg)
2.58
Tax Ratio
16.61%
Dividend Payout Ratio
16.34%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.72%
ROE (avg)
2.31%
Valuation Key Factors 
Factor
Value
P/E Ratio
155
Industry P/E
Price to Book Value
5.10
EV to EBIT
-269.20
EV to EBITDA
2106.70
EV to Capital Employed
11.75
EV to Sales
1.50
PEG Ratio
1.52
Dividend Yield
0.10%
ROCE (Latest)
-4.36%
ROE (Latest)
3.28%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Movement
10What is working for the Company
NET SALES(9M)
At CNY 954.13 MM has Grown at 17.33%
NET PROFIT(HY)
Higher at CNY 13.22 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 2,146.64 times
-5What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 45.7% (YoY
NET SALES(Q)
Lowest at CNY 292.53 MM
Here's what is working for Shanghai Sanmao Enterprise (Group) Co., Ltd.
Net Profit
Higher at CNY 13.22 MM
than preceding 12 month period ended Sep 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Net Profit
At CNY 13.22 MM has Grown at 53.42%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 2,146.64 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Shanghai Sanmao Enterprise (Group) Co., Ltd.
Net Sales
At CNY 292.53 MM has Fallen at -16.62%
over average net sales of the previous four periods of CNY 350.84 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Net Sales
Lowest at CNY 292.53 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Raw Material Cost
Grown by 45.7% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






