Shanghai Sunglow Packaging Technology Co., Ltd. (603499) 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 Sunglow Packaging Technology Co., Ltd.

Why is Shanghai Sunglow Packaging Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.11%

The company has been able to generate a Return on Capital Employed (avg) of 2.11% signifying low profitability per unit of total capital (equity and debt)

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 23.50% and Operating profit at 58.59% 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 4.46% signifying low profitability per unit of shareholders funds

With ROE of 16.45%, it has a very expensive valuation with a 6.03 Price to Book Value

Over the past year, while the stock has generated a return of -21.06%, its profits have risen by 348% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.6

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -21.06% 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 Packaging)

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

Is Shanghai Sunglow Packaging Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Sunglow Packaging Technology Co., Ltd.

-21.06%

0.43

58.36%

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)

23.50%

EBIT Growth (5y)

58.59%

EBIT to Interest (avg)

2.06

Debt to EBITDA (avg)

2.59

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

0.75

Tax Ratio

9.48%

Dividend Payout Ratio

46.09%

Pledged Shares

Institutional Holding

ROCE (avg)

2.11%

ROE (avg)

4.46%

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

6.03

EV to EBIT

40.38

EV to EBITDA

24.74

EV to Capital Employed

4.79

EV to Sales

5.27

PEG Ratio

0.17

Dividend Yield

0.56%

ROCE (Latest)

11.86%

ROE (Latest)

16.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

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

32What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 246.24 MM

NET PROFIT(Q)

At CNY 37.04 MM has Grown at 278.28%

ROCE(HY)

Highest at 15.88%

PRE-TAX PROFIT(Q)

At CNY 44.63 MM has Grown at 200.84%

RAW MATERIAL COST(Y)

Fallen by -45.54% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.98%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.16%

NET SALES(Q)

At CNY 255.71 MM has Grown at 37.79%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Shanghai Sunglow Packaging Technology Co., Ltd.

Net Profit

At CNY 37.04 MM has Grown at 278.28%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 246.24 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)

Pre-Tax Profit

At CNY 44.63 MM has Grown at 200.84%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 255.71 MM has Grown at 37.79%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 6.98%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.16%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -45.54% (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