Shanghai Taihe Water Technology Development Co., Ltd. () 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 Taihe Water Technology Development Co., Ltd.

Why is Shanghai Taihe Water Technology Development Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.59%

The company has been able to generate a Return on Capital Employed (avg) of 4.59% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -30.18% and Operating profit at -215.57% over the last 5 years

Negative results in Sep 25

INTEREST(9M) At CNY 0.7 MM has Grown at inf%
NET SALES(9M) At CNY 81.39 MM has Grown at -14.33%
PRE-TAX PROFIT(Q) At CNY -25.24 MM has Fallen at -59.05%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 1.85%, its profits have fallen by -21.3%

Underperformed the market in the last 1 year

The stock has generated a return of 1.85% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Miscellaneous)

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

Is Shanghai Taihe Water Technology Development Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai Taihe Water Technology Development Co., Ltd.

-97.24%

-0.13

43.61%

China Shanghai Composite

19.22%

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)

-27.23%

EBIT Growth (5y)

-216.08%

EBIT to Interest (avg)

-109.01

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.11

Tax Ratio

0.11%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.59%

ROE (avg)

2.37%

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

0.04

EV to EBIT

0.11

EV to EBITDA

0.12

EV to Capital Employed

-0.05

EV to Sales

-0.35

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-46.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Bearish

OBV

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

7What is working for the Company

NET PROFIT(HY)

Higher at CNY -228.44 MM

NET SALES(9M)

Higher at CNY 84.52 MM

-19What is not working for the Company

INTEREST(9M)

At CNY 0.12 MM has Grown at inf%

NET SALES(Q)

At CNY 12.78 MM has Fallen at -57.76%

PRE-TAX PROFIT(Q)

At CNY -11.36 MM has Fallen at -82.78%

NET PROFIT(Q)

At CNY -11.43 MM has Fallen at -96.69%

ROCE(HY)

Lowest at -38.04%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.27 times

RAW MATERIAL COST(Y)

Grown by 19.29% (YoY

CASH AND EQV(HY)

Lowest at CNY 187.56 MM

Here's what is not working for Shanghai Taihe Water Technology Development Co., Ltd.

Interest

At CNY 0.12 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 12.78 MM has Fallen at -57.76%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -11.36 MM has Fallen at -82.78%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -11.43 MM has Fallen at -96.69%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 1.27 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Cash and Eqv

Lowest at CNY 187.56 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 19.29% (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