Shanghai Welltech Automation Co., Ltd. (002058) 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 Welltech Automation Co., Ltd.

Why is Shanghai Welltech Automation Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.05%

The company has been able to generate a Return on Capital Employed (avg) of 1.05% 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 31.06% and Operating profit at -0.72% over the last 5 years

With a growth in Operating Profit of 2834.47%, the company declared Very Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 28.35 MM
ROCE(HY) Highest at 209.29%
CASH AND EQV(HY) Highest at CNY 404.86 MM

With ROE of 57.17%, it has a fair valuation with a 12.71 Price to Book Value

Over the past year, while the stock has generated a return of 82.28%, its profits have risen by 1493.7% ; the PEG ratio of the company is 0

Market Beating Performance

The stock has generated a return of 82.28% in the last 1 year, much higher than market (China Shanghai Composite) returns of 13.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanghai Welltech Automation Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Shanghai Welltech Automation Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Welltech Automation Co., Ltd.

98.8%

3.19

51.44%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

31.06%

EBIT Growth (5y)

-0.72%

EBIT to Interest (avg)

-7.26

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

0.84

Tax Ratio

3.54%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.05%

ROE (avg)

1.95%

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

12.71

EV to EBIT

-275.95

EV to EBITDA

-631.72

EV to Capital Employed

157.23

EV to Sales

25.13

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

-56.98%

ROE (Latest)

57.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

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

23What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 28.35 MM

ROCE(HY)

Highest at 209.29%

CASH AND EQV(HY)

Highest at CNY 404.86 MM

NET SALES(Q)

Highest at CNY 209.39 MM

PRE-TAX PROFIT(Q)

At CNY 0 MM has Grown at 100%

-7What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 103.77% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 801.65 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.16 times

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

Net Sales

At CNY 209.39 MM has Grown at 339.65%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 28.35 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 209.39 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 0 MM has Grown at 100%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 404.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Shanghai Welltech Automation Co., Ltd.

Debt-Equity Ratio

Highest at 801.65 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 0 times

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 1.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 103.77% (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