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 -13.79% and Operating profit at 3.65% over the last 5 years

Flat results in Sep 25

RAW MATERIAL COST(Y) Grown by 15.16% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 30.68 times
OPERATING PROFIT(Q) Lowest at CNY 87.53 MM

With ROE of 7.51%, it has a very attractive valuation with a 1.50 Price to Book Value

Over the past year, while the stock has generated a return of 5.65%, its profits have risen by 19.5% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 2.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Cereals Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Beverages should be less than 30%

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

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

Is Shenzhen Cereals Holdings Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shenzhen Cereals Holdings Co., Ltd.

10.69%

0.45

28.09%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-13.79%

EBIT Growth (5y)

3.65%

EBIT to Interest (avg)

13.07

Debt to EBITDA (avg)

1.63

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

0.95

Tax Ratio

23.78%

Dividend Payout Ratio

53.13%

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

1.50

EV to EBIT

17.19

EV to EBITDA

12.40

EV to Capital Employed

1.42

EV to Sales

1.57

PEG Ratio

1.03

Dividend Yield

2.23%

ROCE (Latest)

8.27%

ROE (Latest)

7.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 729.02 MM

DEBT-EQUITY RATIO (HY)

Lowest at 12.05 %

-7What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 15.16% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 30.68 times

OPERATING PROFIT(Q)

Lowest at CNY 87.53 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.7 %

PRE-TAX PROFIT(Q)

Lowest at CNY 90.39 MM

NET PROFIT(Q)

Lowest at CNY 67.51 MM

EPS(Q)

Lowest at CNY 0.06

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

Operating Cash Flow

Highest at CNY 729.02 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at 12.05 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Shenzhen Cereals Holdings Co., Ltd.

Operating Profit

Lowest at CNY 87.53 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.7 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 90.39 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 67.51 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 30.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 15.16% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales