Shanghai Shenda Co., Ltd. (600626) 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 Shenda Co., Ltd.

Why is Shanghai Shenda Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.65%

The company has been able to generate a Return on Capital Employed (avg) of 0.65% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -1.42% and Operating profit at 17.85% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 0.23% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

NET SALES(HY) At CNY 5,437.89 MM has Grown at -10.01%
INTEREST COVERAGE RATIO(Q) Lowest at 147.59
DEBTORS TURNOVER RATIO(HY) Lowest at 5.15 times

With ROE of -1.04%, it has a risky valuation with a 1.80 Price to Book Value

Over the past year, while the stock has generated a return of 22.52%, its profits have risen by 69.1%

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 Garments & Apparels)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Shanghai Shenda Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Shenda Co., Ltd.

4.72%

1.77

42.02%

China Shanghai Composite

23.91%

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)

-0.29%

EBIT Growth (5y)

16.98%

EBIT to Interest (avg)

-2.00

Debt to EBITDA (avg)

4.10

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

1.77

Tax Ratio

100.00%

Dividend Payout Ratio

322.58%

Pledged Shares

Institutional Holding

ROCE (avg)

0.65%

ROE (avg)

0.23%

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

1.19

EV to EBIT

26.08

EV to EBITDA

8.47

EV to Capital Employed

1.14

EV to Sales

0.47

PEG Ratio

0.54

Dividend Yield

ROCE (Latest)

4.37%

ROE (Latest)

2.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,046.13 MM

RAW MATERIAL COST(Y)

Fallen by -14.02% (YoY

NET PROFIT(9M)

Higher at CNY 45.7 MM

CASH AND EQV(HY)

Highest at CNY 3,932.62 MM

DEBT-EQUITY RATIO (HY)

Lowest at 46 %

-17What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -29.79 MM has Fallen at -127.53%

NET PROFIT(Q)

At CNY -11.89 MM has Fallen at -1,308.06%

INTEREST COVERAGE RATIO(Q)

Lowest at 29.01

NET SALES(Q)

Lowest at CNY 2,360.64 MM

OPERATING PROFIT(Q)

Lowest at CNY 10.49 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.44 %

Here's what is working for Shanghai Shenda Co., Ltd.

Operating Cash Flow

Highest at CNY 1,046.13 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 3,932.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 46 %

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 -14.02% (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 Shenda Co., Ltd.

Pre-Tax Profit

At CNY -29.79 MM has Fallen at -127.53%

over average net sales of the previous four periods of CNY -13.09 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -11.89 MM has Fallen at -1,308.06%

over average net sales of the previous four periods of CNY 0.98 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 2,360.64 MM has Fallen at -12.01%

over average net sales of the previous four periods of CNY 2,682.83 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 29.01

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 2,360.64 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 10.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.44 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales