Shenghe Resources Holding Co., Ltd. (600392) 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

Shenghe Resources Holding Co., Ltd.

Why is Shenghe Resources Holding Co., Ltd. ?

With a growth in Net Profit of 96.91%, the company declared Very Positive results in Sep 25

ROCE(HY) Highest at 8.16%
INTEREST COVERAGE RATIO(Q) Highest at 1,486.95
RAW MATERIAL COST(Y) Fallen by -74.36% (YoY)

With ROE of 6.64%, it has a expensive valuation with a 3.80 Price to Book Value

Over the past year, while the stock has generated a return of 156.88%, its profits have risen by 202.2% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0.5

Market Beating performance in long term as well as near term

Along with generating 156.88% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenghe Resources Holding 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 Shenghe Resources Holding Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenghe Resources Holding Co., Ltd.

139.98%

3.95

57.38%

China Shanghai Composite

23.91%

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)

12.01%

EBIT Growth (5y)

-0.09%

EBIT to Interest (avg)

8.12

Debt to EBITDA (avg)

1.37

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

0.97

Tax Ratio

17.73%

Dividend Payout Ratio

73.11%

Pledged Shares

Institutional Holding

ROCE (avg)

8.53%

ROE (avg)

8.98%

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

3.05

EV to EBIT

36.28

EV to EBITDA

31.17

EV to Capital Employed

2.94

EV to Sales

2.60

PEG Ratio

0.67

Dividend Yield

0.67%

ROCE (Latest)

8.10%

ROE (Latest)

7.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

No Trend

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

16What is working for the Company

NET SALES(HY)

At CNY 7,917.36 MM has Grown at 29.69%

ROCE(HY)

Highest at 8.86%

RAW MATERIAL COST(Y)

Fallen by -84.69% (YoY

CASH AND EQV(HY)

Highest at CNY 11,847.2 MM

DEBT-EQUITY RATIO (HY)

Lowest at 5.63 %

DEBTORS TURNOVER RATIO(HY)

Highest at 9.87 times

NET PROFIT(Q)

At CNY 327.31 MM has Grown at 56.06%

-10What is not working for the Company

NET SALES(Q)

At CNY 3,382.51 MM has Fallen at -9.7%

INTEREST(Q)

Highest at CNY 37.59 MM

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

Net Profit

At CNY 327.31 MM has Grown at 56.06%

over average net sales of the previous four periods of CNY 209.74 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 11,847.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 5.63 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 9.87 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 -84.69% (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 Shenghe Resources Holding Co., Ltd.

Interest

At CNY 37.59 MM has Grown at 44.85%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 3,382.51 MM has Fallen at -9.7%

over average net sales of the previous four periods of CNY 3,746.06 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 37.59 MM

in the last five periods and Increased by 44.85% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)