Shengda Resources Co., Ltd. (000603) 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

Shengda Resources Co., Ltd.

Why is Shengda Resources Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.34% and Operating profit at 11.66% over the last 5 years

The company has declared Positive results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 1,102.48 MM
PRE-TAX PROFIT(Q) At CNY 124.62 MM has Grown at 4,695.14%
NET PROFIT(Q) At CNY 78.81 MM has Grown at 801.4%

With ROE of 20.13%, it has a fair valuation with a 4.54 Price to Book Value

Over the past year, while the stock has generated a return of 84.28%, its profits have risen by 33.9% ; the PEG ratio of the company is 0.4

Consistent Returns over the last 3 years

Along with generating 84.28% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shengda Resources Co., Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

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

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

Is Shengda Resources Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shengda Resources Co., Ltd.

65.44%

1.55

66.19%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.34%

EBIT Growth (5y)

11.66%

EBIT to Interest (avg)

6.76

Debt to EBITDA (avg)

1.05

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

0.46

Tax Ratio

17.67%

Dividend Payout Ratio

15.55%

Pledged Shares

Institutional Holding

ROCE (avg)

15.48%

ROE (avg)

16.50%

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

4.54

EV to EBIT

17.88

EV to EBITDA

15.02

EV to Capital Employed

3.50

EV to Sales

7.12

PEG Ratio

0.44

Dividend Yield

ROCE (Latest)

19.56%

ROE (Latest)

20.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,102.48 MM

PRE-TAX PROFIT(Q)

At CNY 124.62 MM has Grown at 4,695.14%

NET PROFIT(Q)

At CNY 78.81 MM has Grown at 801.4%

NET SALES(HY)

At CNY 1,193.41 MM has Grown at 23.18%

ROCE(HY)

Highest at 18.26%

RAW MATERIAL COST(Y)

Fallen by -191.32% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 23.86 times

-7What is not working for the Company

INTEREST(HY)

At CNY 50.88 MM has Grown at 22.2%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.81 times

DEBT-EQUITY RATIO (HY)

Highest at 48.97 %

Here's what is working for Shengda Resources Co., Ltd.

Pre-Tax Profit

At CNY 124.62 MM has Grown at 4,695.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 78.81 MM has Grown at 801.4%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 1,102.48 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 1,193.41 MM has Grown at 23.18%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 23.86 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -191.32% (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 Shengda Resources Co., Ltd.

Interest

At CNY 50.88 MM has Grown at 22.2%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 2.81 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

Debt-Equity Ratio

Highest at 48.97 %

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