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.

-39.7%

5.21

48.56%

China Shanghai Composite

8.25%

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)

9.74%

EBIT Growth (5y)

-32.95%

EBIT to Interest (avg)

4.01

Debt to EBITDA (avg)

2.55

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

0.68

Tax Ratio

2.02%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.24%

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

NA (Loss Making)

Industry P/E

Price to Book Value

3.73

EV to EBIT

450.94

EV to EBITDA

52.29

EV to Capital Employed

2.90

EV to Sales

3.87

PEG Ratio

Dividend Yield

1.65%

ROCE (Latest)

0.64%

ROE (Latest)

-0.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

-29What is not working for the Company

INTEREST(9M)

At CNY 13.9 MM has Grown at 20.75%

NET PROFIT(Q)

At CNY -3.76 MM has Fallen at -166.34%

OPERATING CASH FLOW(Y)

Lowest at CNY 113.87 MM

ROCE(HY)

Lowest at -5.21%

PRE-TAX PROFIT(Q)

Lowest at CNY -5.97 MM

RAW MATERIAL COST(Y)

Grown by 16.49% (YoY

CASH AND EQV(HY)

Lowest at CNY 276.44 MM

DEBT-EQUITY RATIO (HY)

Highest at 43.63 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.09 times

OPERATING PROFIT(Q)

Lowest at CNY -1.01 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.34 %

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

Pre-Tax Profit

At CNY -5.97 MM has Fallen at -249.69%

over average net sales of the previous four periods of CNY 3.99 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -3.76 MM has Fallen at -166.34%

over average net sales of the previous four periods of CNY 5.66 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 13.9 MM has Grown at 20.75%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

Lowest at CNY -5.97 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 113.87 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY -1.01 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 276.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 43.63 %

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

Inventory Turnover Ratio

Lowest at 3.09 times

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 16.49% (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