Shanghai SK Petroleum & Chemical Equipment Corp. Ltd. (002278) 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 SK Petroleum & Chemical Equipment Corp. Ltd.

Why is Shanghai SK Petroleum & Chemical Equipment Corp. Ltd. ?

Poor Management Efficiency with a low ROCE of 2.96%

The company has been able to generate a Return on Capital Employed (avg) of 2.96% signifying low profitability per unit of total capital (equity and debt)

With ROE of 5.75%, it has a attractive valuation with a 2.92 Price to Book Value

Over the past year, while the stock has generated a return of -2.13%, its profits have risen by 79.1% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0.5

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 13.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -2.13% returns

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 Electronics & Appliances)

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

Is Shanghai SK Petroleum & Chemical Equipment Corp. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai SK Petroleum & Chemical Equipment Corp. Ltd.

-0.27%

2.60

64.10%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.31%

EBIT Growth (5y)

7.51%

EBIT to Interest (avg)

6.81

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.57

Tax Ratio

1.29%

Dividend Payout Ratio

59.38%

Pledged Shares

Institutional Holding

ROCE (avg)

2.96%

ROE (avg)

3.29%

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

2.92

EV to EBIT

57.67

EV to EBITDA

31.05

EV to Capital Employed

3.09

EV to Sales

4.16

PEG Ratio

0.64

Dividend Yield

0.53%

ROCE (Latest)

5.35%

ROE (Latest)

5.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 137.7 MM

NET PROFIT(9M)

Higher at CNY 37.52 MM

CASH AND EQV(HY)

Highest at CNY 580.53 MM

-17What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 151.81

RAW MATERIAL COST(Y)

Grown by 8.11% (YoY

NET SALES(Q)

Lowest at CNY 160.97 MM

OPERATING PROFIT(Q)

Lowest at CNY 1.14 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.71 %

PRE-TAX PROFIT(Q)

Lowest at CNY 6.1 MM

NET PROFIT(Q)

Lowest at CNY 2.35 MM

EPS(Q)

Lowest at CNY 0.01

Here's what is working for Shanghai SK Petroleum & Chemical Equipment Corp. Ltd.

Operating Cash Flow

Highest at CNY 137.7 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)

Cash and Eqv

Highest at CNY 580.53 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Shanghai SK Petroleum & Chemical Equipment Corp. Ltd.

Pre-Tax Profit

At CNY 6.1 MM has Fallen at -61.43%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 2.35 MM has Fallen at -75.7%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 151.81

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 160.97 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 1.14 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.71 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 6.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 2.35 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 8.11% (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