Shanghai Sinotec Co., Ltd. (603121) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shanghai Sinotec Co., Ltd.

Why is Shanghai Sinotec Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.97% and Operating profit at -16.61% over the last 5 years

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

INTEREST(HY) At CNY 10.3 MM has Grown at 22.09%
INTEREST COVERAGE RATIO(Q) Lowest at 319.57
OPERATING PROFIT(Q) Lowest at CNY 8.67 MM

With ROE of 2.63%, it has a very expensive valuation with a 5.53 Price to Book Value

Over the past year, while the stock has generated a return of 81.70%, its profits have fallen by -69.8%
At the current price, the company has a high dividend yield of 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 Auto Components & Equipments)

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

Is Shanghai Sinotec Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Sinotec Co., Ltd.

81.7%

2.81

52.23%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.97%

EBIT Growth (5y)

-16.61%

EBIT to Interest (avg)

7.89

Debt to EBITDA (avg)

1.55

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

0.67

Tax Ratio

25.28%

Dividend Payout Ratio

196.08%

Pledged Shares

Institutional Holding

ROCE (avg)

4.76%

ROE (avg)

4.73%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

210

Industry P/E

Price to Book Value

5.53

EV to EBIT

253.45

EV to EBITDA

53.88

EV to Capital Employed

4.18

EV to Sales

6.06

PEG Ratio

Dividend Yield

1.97%

ROCE (Latest)

1.65%

ROE (Latest)

2.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 175.57 MM

-31What is not working for the Company

INTEREST(HY)

At CNY 10.3 MM has Grown at 22.09%

INTEREST COVERAGE RATIO(Q)

Lowest at 319.57

OPERATING PROFIT(Q)

Lowest at CNY 8.67 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.17 %

PRE-TAX PROFIT(Q)

At CNY 12.03 MM has Fallen at -42.66%

RAW MATERIAL COST(Y)

Grown by 8.08% (YoY

NET SALES(Q)

Lowest at CNY 273.72 MM

NET PROFIT(Q)

At CNY 14.34 MM has Fallen at -32.41%

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

Operating Cash Flow

Highest at CNY 175.57 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)

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

Interest

At CNY 10.3 MM has Grown at 22.09%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 319.57

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 8.67 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.17 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 12.03 MM has Fallen at -42.66%

over average net sales of the previous four periods of CNY 20.98 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Sales

Lowest at CNY 273.72 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 273.72 MM has Fallen at -11.05%

over average net sales of the previous four periods of CNY 307.72 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Profit

At CNY 14.34 MM has Fallen at -32.41%

over average net sales of the previous four periods of CNY 21.21 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 8.08% (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