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

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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 23.9%, the company declared Very Positive results in Mar 25

OPERATING CASH FLOW(Y) Highest at CNY 410.56 MM
PRE-TAX PROFIT(Q) At CNY 196.61 MM has Grown at 192.73%
RAW MATERIAL COST(Y) Fallen by -583.57% (YoY)

With ROE of 6.64%, it has a expensive valuation with a 3.74 Price to Book Value

Over the past year, while the stock has generated a return of 75.86%, 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

The stock has generated a return of 75.86% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%

Real-Time Research Report

Verdict Report

How much should you buy?

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.

75.86%

2.65

49.74%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.65%

EBIT Growth (5y)

46.89%

EBIT to Interest (avg)

8.12

Debt to EBITDA (avg)

1.37

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

1.15

Tax Ratio

17.73%

Dividend Payout Ratio

101.52%

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

3.74

EV to EBIT

59.63

EV to EBITDA

49.74

EV to Capital Employed

3.16

EV to Sales

3.47

PEG Ratio

0.28

Dividend Yield

0.54%

ROCE (Latest)

5.29%

ROE (Latest)

6.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

22What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 410.56 MM

PRE-TAX PROFIT(Q)

At CNY 196.61 MM has Grown at 192.73%

RAW MATERIAL COST(Y)

Fallen by -583.57% (YoY

NET PROFIT(Q)

Highest at CNY 168.34 MM

EPS(Q)

Highest at CNY 0.1

-13What is not working for the Company

NET SALES(9M)

At CNY 8,898.69 MM has Grown at -26.91%

DEBT-EQUITY RATIO (HY)

Highest at 25.67 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.4%

INTEREST(Q)

Highest at CNY 29.38 MM

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

Net Profit

At CNY 168.34 MM has Grown at 224.78%

over average net sales of the previous four periods of CNY 51.83 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 410.56 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)

Pre-Tax Profit

At CNY 196.61 MM has Grown at 192.73%

over average net sales of the previous four periods of CNY 67.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 168.34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -583.57% (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.

Net Sales

At CNY 6,104.61 MM has Grown at -20.06%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 29.38 MM has Grown at 19.85%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 29.38 MM

in the last five periods and Increased by 19.85% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 25.67 %

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 2.4%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio