Shanghai Yongguan Adhesive Products Corp., Ltd. (603681) 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 Yongguan Adhesive Products Corp., Ltd.

Why is Shanghai Yongguan Adhesive Products Corp., 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 22.99% and Operating profit at -29.90% 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 7.41% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 22.99% and Operating profit at -29.90% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

DEBT-EQUITY RATIO (HY) Highest at 95.61 %
INTEREST COVERAGE RATIO(Q) Lowest at 94.91
INVENTORY TURNOVER RATIO(HY) Lowest at 6.93 times

With ROE of 2.59%, it has a fair valuation with a 1.22 Price to Book Value

Over the past year, while the stock has generated a return of 53.47%, its profits have fallen by -48.9%
At the current price, the company has a high dividend yield of 0.9

Market Beating Performance

The stock has generated a return of 53.47% in the last 1 year, much higher 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 Yongguan Adhesive Products Corp., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Shanghai Yongguan Adhesive Products Corp., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Yongguan Adhesive Products Corp., Ltd.

14.81%

1.33

47.04%

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)

22.99%

EBIT Growth (5y)

-29.90%

EBIT to Interest (avg)

3.71

Debt to EBITDA (avg)

4.40

Net Debt to Equity (avg)

0.94

Sales to Capital Employed (avg)

1.01

Tax Ratio

0.68%

Dividend Payout Ratio

17.05%

Pledged Shares

Institutional Holding

ROCE (avg)

5.02%

ROE (avg)

7.41%

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

1.22

EV to EBIT

136.95

EV to EBITDA

16.98

EV to Capital Employed

1.11

EV to Sales

0.86

PEG Ratio

Dividend Yield

0.91%

ROCE (Latest)

0.81%

ROE (Latest)

2.59%

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

Mildly Bullish

OBV

No Trend

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 485.22 MM

RAW MATERIAL COST(Y)

Fallen by -6.56% (YoY

NET SALES(Q)

Highest at CNY 1,747.37 MM

PRE-TAX PROFIT(Q)

Highest at CNY 87.74 MM

NET PROFIT(Q)

Highest at CNY 78.6 MM

EPS(Q)

Highest at CNY 0.37

-8What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 95.61 %

INTEREST COVERAGE RATIO(Q)

Lowest at 94.91

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.93 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.46 times

OPERATING PROFIT(Q)

Lowest at CNY 16.7 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.96 %

Here's what is working for Shanghai Yongguan Adhesive Products Corp., Ltd.

Pre-Tax Profit

At CNY 87.74 MM has Grown at 433.88%

over average net sales of the previous four periods of CNY 16.43 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 78.6 MM has Grown at 372.62%

over average net sales of the previous four periods of CNY 16.63 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 485.22 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 1,747.37 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 87.74 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 78.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.37

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -6.56% (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 Yongguan Adhesive Products Corp., Ltd.

Interest Coverage Ratio

Lowest at 94.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 95.61 % and Grown

In each half year 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

Operating Profit

Lowest at CNY 16.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 6.93 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 5.46 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio