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 1.49% and Operating profit at -12.85% over the last 5 years
3
Flat results in Mar 25
- OPERATING CASH FLOW(Y) Lowest at CNY -22.29 MM
- RAW MATERIAL COST(Y) Grown by 5.43% (YoY)
- DEBTORS TURNOVER RATIO(HY) Lowest at 5.52%
4
With ROE of 3.28%, it has a very expensive valuation with a 4.64 Price to Book Value
- Over the past year, while the stock has generated a return of 34.35%, its profits have risen by 102.1% ; the PEG ratio of the company is 1.4
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.
40.72%
2.33
47.03%
China Shanghai Composite
15.19%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
1.49%
EBIT Growth (5y)
-12.85%
EBIT to Interest (avg)
-0.07
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.50
Sales to Capital Employed (avg)
2.57
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
141
Industry P/E
Price to Book Value
4.64
EV to EBIT
-241.21
EV to EBITDA
1887.69
EV to Capital Employed
10.53
EV to Sales
1.35
PEG Ratio
1.38
Dividend Yield
0.10%
ROCE (Latest)
-4.36%
ROE (Latest)
3.28%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
16What is working for the Company
NET PROFIT(HY)
At CNY 2.07 MM has Grown at 552.88%
NET SALES(Q)
At CNY 366.16 MM has Grown at 22.08%
-8What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY -22.29 MM
RAW MATERIAL COST(Y)
Grown by 5.43% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.52%
PRE-TAX PROFIT(Q)
At CNY 2.35 MM has Fallen at -39.45%
NET PROFIT(Q)
At CNY 2.15 MM has Fallen at -32.25%
Here's what is working for Shanghai Sanmao Enterprise (Group) Co., Ltd.
Net Sales
At CNY 366.16 MM has Grown at 22.08%
over average net sales of the previous four periods of CNY 299.93 MMMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Here's what is not working for Shanghai Sanmao Enterprise (Group) Co., Ltd.
Operating Cash Flow
Lowest at CNY -22.29 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Pre-Tax Profit
At CNY 2.35 MM has Fallen at -39.45%
over average net sales of the previous four periods of CNY 3.87 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 2.15 MM has Fallen at -32.25%
over average net sales of the previous four periods of CNY 3.17 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Debtors Turnover Ratio
Lowest at 5.52%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 5.43% (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






