Shanghai Smith Adhesive New Material Co., Ltd. (603683) 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 Smith Adhesive New Material Co., Ltd.

Why is Shanghai Smith Adhesive New Material Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 16.45% and Operating profit at 16.46% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 7.02% signifying low profitability per unit of shareholders funds

Negative results in Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 450.33
INVENTORY TURNOVER RATIO(HY) Lowest at 4.37 times
DEBTORS TURNOVER RATIO(HY) Lowest at 4.59 times

With ROE of 4.38%, it has a very expensive valuation with a 6.30 Price to Book Value

Over the past year, while the stock has generated a return of 73.98%, its profits have fallen by -23.4%
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 Other Industrial Products)

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

Is Shanghai Smith Adhesive New Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Smith Adhesive New Material Co., Ltd.

143.79%

3.76

51.58%

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)

16.45%

EBIT Growth (5y)

16.46%

EBIT to Interest (avg)

3.67

Debt to EBITDA (avg)

2.52

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

0.89

Tax Ratio

1.42%

Dividend Payout Ratio

34.62%

Pledged Shares

Institutional Holding

ROCE (avg)

5.14%

ROE (avg)

7.02%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

144

Industry P/E

Price to Book Value

6.30

EV to EBIT

125.53

EV to EBITDA

62.10

EV to Capital Employed

5.07

EV to Sales

5.28

PEG Ratio

Dividend Yield

0.24%

ROCE (Latest)

4.04%

ROE (Latest)

4.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.82% (YoY

NET SALES(Q)

Highest at CNY 561.9 MM

NET PROFIT(Q)

Highest at CNY 26.67 MM

-13What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 450.33

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.37 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.59 times

INTEREST(Q)

Highest at CNY 5.86 MM

OPERATING PROFIT(Q)

Lowest at CNY 26.4 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.7 %

Here's what is working for Shanghai Smith Adhesive New Material Co., Ltd.

Net Sales

Highest at CNY 561.9 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 26.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 26.67 MM has Grown at 60.65%

over average net sales of the previous four periods of CNY 16.6 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -1.82% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Shanghai Smith Adhesive New Material Co., Ltd.

Interest

At CNY 5.86 MM has Grown at 19.17%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 450.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 5.86 MM

in the last five periods and Increased by 19.17% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 26.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.7 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 4.37 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.59 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio