Shanghai Tunnel Engineering Co., Ltd. (600820) 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 Tunnel Engineering Co., Ltd.

Why is Shanghai Tunnel Engineering 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 4.33% and Operating profit at 15.18% 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 10.13% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.33% and Operating profit at 15.18% over the last 5 years

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 3,383.99 MM
ROCE(HY) Lowest at 8.4%
INVENTORY TURNOVER RATIO(HY) Lowest at 34.76 times

With ROE of 9.14%, it has a very attractive valuation with a 0.65 Price to Book Value

Over the past year, while the stock has generated a return of 5.67%, its profits have fallen by -10.9%
At the current price, the company has a high dividend yield of 5

Underperformed the market in the last 1 year

The stock has generated a return of 5.67% 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 hold?

Overall Portfolio exposure to Shanghai Tunnel Engineering Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Shanghai Tunnel Engineering Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai Tunnel Engineering Co., Ltd.

-5.17%

-0.12

23.68%

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)

4.33%

EBIT Growth (5y)

15.18%

EBIT to Interest (avg)

2.18

Debt to EBITDA (avg)

4.91

Net Debt to Equity (avg)

0.73

Sales to Capital Employed (avg)

1.02

Tax Ratio

28.42%

Dividend Payout Ratio

35.41%

Pledged Shares

Institutional Holding

ROCE (avg)

6.97%

ROE (avg)

10.13%

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

0.65

EV to EBIT

12.11

EV to EBITDA

8.81

EV to Capital Employed

0.79

EV to Sales

0.62

PEG Ratio

Dividend Yield

5.02%

ROCE (Latest)

6.49%

ROE (Latest)

9.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

PRE-TAX PROFIT(Q)

At CNY 556.08 MM has Grown at 183.3%

RAW MATERIAL COST(Y)

Fallen by -254.26% (YoY

CASH AND EQV(HY)

Highest at CNY 46,101.97 MM

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 3,383.99 MM

ROCE(HY)

Lowest at 8.4%

INVENTORY TURNOVER RATIO(HY)

Lowest at 34.76 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.9 times

NET SALES(Q)

At CNY 12,374.19 MM has Fallen at -16.73%

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

Pre-Tax Profit

At CNY 556.08 MM has Grown at 183.3%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 46,101.97 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -254.26% (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 Tunnel Engineering Co., Ltd.

Net Sales

At CNY 12,374.19 MM has Fallen at -16.73%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 34.76 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

Debtors Turnover Ratio

Lowest at 0.9 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at CNY 3,383.99 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Non Operating Income

Highest at CNY 0.47 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income