Shanghai Tianchen Co., Ltd. (600620) 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 Tianchen Co., Ltd.

Why is Shanghai Tianchen Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.39%

The company has been able to generate a Return on Capital Employed (avg) of 1.39% signifying low profitability per unit of total capital (equity and debt)

Positive results in Sep 25

NET SALES(HY) At CNY 179.62 MM has Grown at 70.5%
NET PROFIT(HY) At CNY 20.03 MM has Grown at 77.17%
RAW MATERIAL COST(Y) Fallen by -556.03% (YoY)

With ROE of 2.21%, it has a very expensive valuation with a 2.90 Price to Book Value

Over the past year, while the stock has generated a return of 22.07%, its profits have risen by 47% ; the PEG ratio of the company is 2.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanghai Tianchen Co., Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Shanghai Tianchen Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Tianchen Co., Ltd.

8.3%

0.94

39.00%

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)

50.50%

EBIT Growth (5y)

31.68%

EBIT to Interest (avg)

-0.33

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

39.30%

Dividend Payout Ratio

32.12%

Pledged Shares

Institutional Holding

ROCE (avg)

1.39%

ROE (avg)

3.92%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

131

Industry P/E

Price to Book Value

2.90

EV to EBIT

104.89

EV to EBITDA

64.29

EV to Capital Employed

3.01

EV to Sales

12.75

PEG Ratio

2.78

Dividend Yield

0.25%

ROCE (Latest)

2.87%

ROE (Latest)

2.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

18What is working for the Company

NET SALES(HY)

At CNY 179.62 MM has Grown at 70.5%

NET PROFIT(HY)

At CNY 20.03 MM has Grown at 77.17%

RAW MATERIAL COST(Y)

Fallen by -556.03% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -12.21 %

INVENTORY TURNOVER RATIO(HY)

Highest at 0.18 times

-11What is not working for the Company

NET SALES(Q)

At CNY 82.39 MM has Fallen at -18.47%

PRE-TAX PROFIT(Q)

At CNY 6.35 MM has Fallen at -64.44%

NET PROFIT(Q)

At CNY 4.22 MM has Fallen at -64.82%

INTEREST(Q)

At CNY 1.65 MM has Grown at 49.91%

Here's what is working for Shanghai Tianchen Co., Ltd.

Debt-Equity Ratio

Lowest at -12.21 %

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 0.18 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -556.03% (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 Tianchen Co., Ltd.

Net Sales

At CNY 82.39 MM has Fallen at -18.47%

over average net sales of the previous four periods of CNY 101.05 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 6.35 MM has Fallen at -64.44%

over average net sales of the previous four periods of CNY 17.87 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 4.22 MM has Fallen at -64.82%

over average net sales of the previous four periods of CNY 11.98 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1.65 MM has Grown at 49.91%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)