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

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 13.43% and Operating profit at -22.24% over the last 5 years

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

INTEREST(HY) At CNY 9.77 MM has Grown at 58.74%
ROCE(HY) Lowest at 1.76%
INTEREST COVERAGE RATIO(Q) Lowest at 117.82

With ROE of 2.63%, it has a very expensive valuation with a 5.40 Price to Book Value

Over the past year, while the stock has generated a return of 78.47%, 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.

-16.44%

5.21

48.56%

China Shanghai Composite

13.33%

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)

13.43%

EBIT Growth (5y)

-22.24%

EBIT to Interest (avg)

7.89

Debt to EBITDA (avg)

1.55

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

0.68

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

205

Industry P/E

Price to Book Value

5.40

EV to EBIT

247.77

EV to EBITDA

52.67

EV to Capital Employed

4.08

EV to Sales

5.92

PEG Ratio

Dividend Yield

2.01%

ROCE (Latest)

1.65%

ROE (Latest)

2.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

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

-32What is not working for the Company

INTEREST(HY)

At CNY 9.77 MM has Grown at 58.74%

ROCE(HY)

Lowest at 1.76%

INTEREST COVERAGE RATIO(Q)

Lowest at 117.82

RAW MATERIAL COST(Y)

Grown by 12.35% (YoY

CASH AND EQV(HY)

Lowest at CNY 381.51 MM

DEBT-EQUITY RATIO (HY)

Highest at 39.33 %

NET SALES(Q)

Lowest at CNY 275.76 MM

OPERATING PROFIT(Q)

Lowest at CNY 4.22 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.53 %

PRE-TAX PROFIT(Q)

Lowest at CNY 1.48 MM

NET PROFIT(Q)

At CNY 7.08 MM has Fallen at -35.84%

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

Interest

At CNY 9.77 MM has Grown at 58.74%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 1.48 MM has Fallen at -82.42%

over average net sales of the previous four periods of CNY 8.42 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest Coverage Ratio

Lowest at 117.82

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 275.76 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 4.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 1.48 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 7.08 MM has Fallen at -35.84%

over average net sales of the previous four periods of CNY 11.03 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Cash and Eqv

Lowest at CNY 381.51 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 39.33 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 12.35% (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