Shanghai Sanmao Enterprise (Group) Co., Ltd. (600689) 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 Sanmao Enterprise (Group) Co., Ltd.

Why is Shanghai Sanmao Enterprise (Group) Co., Ltd. ?

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)

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

Flat results in Sep 25

RAW MATERIAL COST(Y) Grown by 45.7% (YoY)
NET SALES(Q) Lowest at CNY 292.53 MM

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

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 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.

-7.87%

2.49

39.05%

China Shanghai Composite

21.43%

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)

10.48%

EBIT Growth (5y)

32.76%

EBIT to Interest (avg)

-0.07

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

2.68

Tax Ratio

16.61%

Dividend Payout Ratio

31.69%

Pledged Shares

Institutional Holding

ROCE (avg)

1.72%

ROE (avg)

2.31%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

125

Industry P/E

Price to Book Value

3.53

EV to EBIT

374.26

EV to EBITDA

137.60

EV to Capital Employed

5.42

EV to Sales

1.07

PEG Ratio

4.99

Dividend Yield

0.14%

ROCE (Latest)

1.45%

ROE (Latest)

2.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -92.94% (YoY

OPERATING PROFIT(Q)

Highest at CNY 4.18 MM

OPERATING PROFIT MARGIN(Q)

Highest at 1.96 %

PRE-TAX PROFIT(Q)

At CNY 4.84 MM has Grown at 66.38%

-26What is not working for the Company

NET PROFIT(HY)

At CNY 0.14 MM has Grown at -93.24%

INTEREST(HY)

At CNY 0.22 MM has Grown at 1,709.06%

OPERATING CASH FLOW(Y)

Lowest at CNY -27.72 MM

ROCE(HY)

Lowest at 2.48%

CASH AND EQV(HY)

Lowest at CNY 442.44 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.07 times

NET SALES(Q)

Lowest at CNY 212.65 MM

Here's what is working for Shanghai Sanmao Enterprise (Group) Co., Ltd.

Operating Profit

Highest at CNY 4.18 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 1.96 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CNY 4.84 MM has Grown at 66.38%

over average net sales of the previous four periods of CNY 2.91 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -92.94% (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 Sanmao Enterprise (Group) Co., Ltd.

Net Profit

At CNY 0.14 MM has Grown at -93.24%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 0.22 MM has Grown at 1,709.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 212.65 MM has Fallen at -44.54%

over average net sales of the previous four periods of CNY 383.43 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY -27.72 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 212.65 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 442.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 4.07 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio