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.

-23.51%

-0.73

36.92%

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)

10.60%

EBIT Growth (5y)

-19.56%

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)

0.72

Tax Ratio

43.73%

Dividend Payout Ratio

40.87%

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

107

Industry P/E

Price to Book Value

2.85

EV to EBIT

65.69

EV to EBITDA

37.78

EV to Capital Employed

2.67

EV to Sales

5.38

PEG Ratio

Dividend Yield

0.71%

ROCE (Latest)

4.07%

ROE (Latest)

2.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.07% (YoY

NET PROFIT(9M)

Higher at CNY 472.02 MM

-27What is not working for the Company

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

NET SALES(Q)

At CNY 1,000.48 MM has Fallen at -9.92%

INTEREST(Q)

Highest at CNY 4.03 MM

PRE-TAX PROFIT(Q)

At CNY 44 MM has Fallen at -36.74%

NET PROFIT(Q)

At CNY 28.73 MM has Fallen at -41.31%

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

Raw Material Cost

Fallen by -0.07% (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 Shede Spirits Co., Ltd.

Operating Cash Flow

Lowest at CNY -805.61 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 4.03 MM has Grown at 14.27%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 14.47 % 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

Net Sales

At CNY 1,000.48 MM has Fallen at -9.92%

over average net sales of the previous four periods of CNY 1,110.68 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 4.03 MM

in the last five periods and Increased by 14.27% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 44 MM has Fallen at -36.74%

over average net sales of the previous four periods of CNY 69.55 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 28.73 MM has Fallen at -41.31%

over average net sales of the previous four periods of CNY 48.95 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 0.34 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio