Shanghai Shunho New Materials Technology Co., Ltd. (002565) 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 Shunho New Materials Technology Co., Ltd.

Why is Shanghai Shunho New Materials Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.12%

The company has been able to generate a Return on Capital Employed (avg) of 2.12% 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 -8.33% and Operating profit at -36.62% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET SALES(HY) At CNY 580.11 MM has Grown at -18.49%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.88 times
INVENTORY TURNOVER RATIO(HY) Lowest at 2.82 times

With ROE of 3.10%, it has a expensive valuation with a 9.26 Price to Book Value

Over the past year, while the stock has generated a return of 85.71%, its profits have fallen by -10%
At the current price, the company has a high dividend yield of 0.2

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 Packaging)

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

Is Shanghai Shunho New Materials Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Shunho New Materials Technology Co., Ltd.

24.36%

5.50

74.62%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.33%

EBIT Growth (5y)

-36.62%

EBIT to Interest (avg)

3.22

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

0.62

Tax Ratio

9.11%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.62%

ROE (avg)

1.90%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

224

Industry P/E

Price to Book Value

6.96

EV to EBIT

2203.75

EV to EBITDA

202.71

EV to Capital Employed

8.81

EV to Sales

10.71

PEG Ratio

Dividend Yield

ROCE (Latest)

0.40%

ROE (Latest)

3.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-35What is not working for the Company

INTEREST(HY)

At CNY 3.1 MM has Grown at 23.18%

PRE-TAX PROFIT(Q)

At CNY -5.96 MM has Fallen at -142.32%

NET PROFIT(Q)

At CNY -4.95 MM has Fallen at -142.74%

RAW MATERIAL COST(Y)

Grown by 16.56% (YoY

NET SALES(Q)

Lowest at CNY 235.87 MM

OPERATING PROFIT(Q)

Lowest at CNY -4.41 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.87 %

Here's what is not working for Shanghai Shunho New Materials Technology Co., Ltd.

Interest

At CNY 3.1 MM has Grown at 23.18%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 235.87 MM has Fallen at -18.24%

over average net sales of the previous four periods of CNY 288.49 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -5.96 MM has Fallen at -142.32%

over average net sales of the previous four periods of CNY 14.09 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -4.95 MM has Fallen at -142.74%

over average net sales of the previous four periods of CNY 11.59 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 235.87 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -4.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -1.87 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 16.56% (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

Non Operating Income

Highest at CNY 1.07 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income