Shede Spirits Co., Ltd. (600702) 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

Shede Spirits Co., Ltd.

Why is Shede Spirits Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.60% and Operating profit at -19.56% over the last 5 years

With a fall in Net Sales of -11.07%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 5 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY -805.61 MM
DEBT-EQUITY RATIO (HY) Highest at 14.47 %
INVENTORY TURNOVER RATIO(HY) Lowest at 0.34 times

With ROE of 2.66%, it has a very expensive valuation with a 2.85 Price to Book Value

Over the past year, while the stock has generated a return of -6.48%, its profits have fallen by -86.9%
At the current price, the company has a high dividend yield of 0.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.48% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Beverages)

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

Is Shede Spirits Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shede Spirits Co., Ltd.

-21.48%

-0.73

36.92%

China Shanghai Composite

21.43%

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)

5.38%

EBIT Growth (5y)

-33.86%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

0.63

Tax Ratio

43.73%

Dividend Payout Ratio

45.57%

Pledged Shares

Institutional Holding

ROCE (avg)

51.26%

ROE (avg)

19.96%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

135

Industry P/E

Price to Book Value

1.86

EV to EBIT

105.92

EV to EBITDA

42.04

EV to Capital Employed

1.72

EV to Sales

3.40

PEG Ratio

Dividend Yield

0.78%

ROCE (Latest)

1.62%

ROE (Latest)

1.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

8What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 307.84 MM has Grown at 284.53%

NET PROFIT(Q)

At CNY 231.35 MM has Grown at 311.69%

NET SALES(Q)

At CNY 1,481.34 MM has Grown at 34.08%

-29What is not working for the Company

NET PROFIT(HY)

At CNY -15.88 MM has Grown at -173.87%

OPERATING CASH FLOW(Y)

Lowest at CNY -848.65 MM

ROCE(HY)

Lowest at 1.52%

DEBT-EQUITY RATIO (HY)

Highest at 19.72 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.31 times

CASH AND EQV(HY)

Lowest at CNY 2,893.03 MM

INTEREST(Q)

Highest at CNY 12.85 MM

Here's what is working for Shede Spirits Co., Ltd.

Pre-Tax Profit

At CNY 307.84 MM has Grown at 284.53%

over average net sales of the previous four periods of CNY 80.06 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 231.35 MM has Grown at 311.69%

over average net sales of the previous four periods of CNY 56.2 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 1,481.34 MM has Grown at 34.08%

over average net sales of the previous four periods of CNY 1,104.8 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Here's what is not working for Shede Spirits Co., Ltd.

Operating Cash Flow

Lowest at CNY -848.65 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 12.85 MM has Grown at 71.93%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 19.72 % 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

Inventory Turnover Ratio

Lowest at 0.31 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

Interest

Highest at CNY 12.85 MM

in the last five periods and Increased by 71.93% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 2,893.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents