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

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 19.90% and Operating profit at 72.41% 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 6.19 Price to Book Value

Over the past year, while the stock has generated a return of 11.70%, 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 0.5

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, Medium Return

Absolute

Risk Adjusted

Volatility

Shanghai Sunglow Packaging Technology Co., Ltd.

41.31%

0.54

55.11%

China Shanghai Composite

21.43%

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)

13.92%

EBIT Growth (5y)

156.42%

EBIT to Interest (avg)

2.06

Debt to EBITDA (avg)

2.59

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

0.78

Tax Ratio

9.48%

Dividend Payout Ratio

20.82%

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

5.50

EV to EBIT

48.03

EV to EBITDA

30.24

EV to Capital Employed

4.79

EV to Sales

5.07

PEG Ratio

Dividend Yield

0.56%

ROCE (Latest)

9.97%

ROE (Latest)

12.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 262.02 MM

DEBT-EQUITY RATIO (HY)

Lowest at 23.39 %

INVENTORY TURNOVER RATIO(HY)

Highest at 7.27 times

-12What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,780.86

OPERATING PROFIT MARGIN(Q)

Lowest at 11.57 %

RAW MATERIAL COST(Y)

Grown by 11% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 30.41 MM

PRE-TAX PROFIT(Q)

Fallen at -26.92%

NET PROFIT(Q)

Fallen at -26.01%

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

Operating Cash Flow

Highest at CNY 262.02 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)

Debt-Equity Ratio

Lowest at 23.39 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 7.27 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Shanghai Sunglow Packaging Technology Co., Ltd.

Interest Coverage Ratio

Lowest at 1,780.86

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 11.57 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 30.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Fallen at -26.92%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -26.01%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 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