Shenzhen Cereals Holdings Co., Ltd. (000019) 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

Shenzhen Cereals Holdings Co., Ltd.

Why is Shenzhen Cereals Holdings Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -15.63% and Operating profit at -6.60% over the last 5 years

Negative results in Mar 26

NET PROFIT(HY) At CNY 64.63 MM has Grown at -62.44%
ROCE(HY) Lowest at 4.31%
NET SALES(Q) At CNY 1,159.52 MM has Fallen at -15.61%

With ROE of 4.29%, it has a expensive valuation with a 0.52 Price to Book Value

Over the past year, while the stock has generated a return of -6.44%, its profits have fallen by -38.3%
At the current price, the company has a high dividend yield of 6.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.44% 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 Shenzhen Cereals Holdings Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Cereals Holdings Co., Ltd.

-7.44%

-0.03

32.06%

China Shanghai Composite

23.91%

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)

-15.63%

EBIT Growth (5y)

-6.60%

EBIT to Interest (avg)

13.07

Debt to EBITDA (avg)

1.63

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

0.92

Tax Ratio

23.78%

Dividend Payout Ratio

56.87%

Pledged Shares

Institutional Holding

ROCE (avg)

7.94%

ROE (avg)

7.99%

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

0.52

EV to EBIT

10.41

EV to EBITDA

7.64

EV to Capital Employed

0.60

EV to Sales

0.67

PEG Ratio

Dividend Yield

6.26%

ROCE (Latest)

5.79%

ROE (Latest)

4.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.4% (YoY

-19What is not working for the Company

NET PROFIT(HY)

At CNY 64.63 MM has Grown at -62.44%

ROCE(HY)

Lowest at 4.31%

NET SALES(Q)

At CNY 1,159.52 MM has Fallen at -15.61%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,225.49

CASH AND EQV(HY)

Lowest at CNY 162.79 MM

DEBT-EQUITY RATIO (HY)

Highest at 20.8 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.17 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 25.99 times

OPERATING PROFIT(Q)

Lowest at CNY 86.68 MM

Here's what is working for Shenzhen Cereals Holdings Co., Ltd.

Raw Material Cost

Fallen by -4.4% (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 Shenzhen Cereals Holdings Co., Ltd.

Net Profit

At CNY 64.63 MM has Grown at -62.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,159.52 MM has Fallen at -15.61%

over average net sales of the previous four periods of CNY 1,374.03 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 1,225.49

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 86.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Cash and Eqv

Lowest at CNY 162.79 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 20.8 %

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 1.17 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 25.99 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio