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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -0.29% and Operating profit at 16.98% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 0.23% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.29% and Operating profit at 16.98% over the last 5 years

OPERATING CASH FLOW(Y) Highest at CNY 888.12 MM
ROCE(HY) Highest at 2.97%
CASH AND EQV(HY) Highest at CNY 4,041.19 MM

With ROE of 2.27%, it has a expensive valuation with a 1.33 Price to Book Value

Over the past year, while the stock has generated a return of -12.19%, its profits have risen by 96.2% ; the PEG ratio of the company is 0.6

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 3.40% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.19% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanghai Shenda Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Shanghai Shenda Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Shenda Co., Ltd.

-11.55%

1.16

41.65%

China Shanghai Composite

3.23%

0.23

14.72%

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)

-0.29

Debt to EBITDA (avg)

3.58

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)

1.52%

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

1.33

EV to EBIT

28.46

EV to EBITDA

9.24

EV to Capital Employed

1.24

EV to Sales

0.51

PEG Ratio

0.61

Dividend Yield

ROCE (Latest)

4.37%

ROE (Latest)

2.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

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

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 888.12 MM

ROCE(HY)

Highest at 2.97%

CASH AND EQV(HY)

Highest at CNY 4,041.19 MM

DEBT-EQUITY RATIO (HY)

Lowest at 46.53 %

PRE-TAX PROFIT(Q)

Highest at CNY 26.34 MM

NET PROFIT(Q)

Highest at CNY 49.21 MM

EPS(Q)

Highest at CNY 0.04

-3What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.99 times

RAW MATERIAL COST(Y)

Grown by 11.35% (YoY

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

Pre-Tax Profit

At CNY 26.34 MM has Grown at 640.51%

over average net sales of the previous four periods of CNY -4.87 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 49.21 MM has Grown at 343.65%

over average net sales of the previous four periods of CNY 11.09 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 888.12 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)

Pre-Tax Profit

Highest at CNY 26.34 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 49.21 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 4,041.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 46.53 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Shanghai Shenda Co., Ltd.

Inventory Turnover Ratio

Lowest at 11.99 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 11.35% (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