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

With a fall in Net Sales of -26.93%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
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 -12.17%, 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 -12.17% 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.

5.12%

-0.11

32.54%

China Shanghai Composite

3.23%

1.20

14.07%

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)

10.43

Debt to EBITDA (avg)

1.70

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

0.92

Tax Ratio

52.24%

Dividend Payout Ratio

56.87%

Pledged Shares

Institutional Holding

ROCE (avg)

7.38%

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

1.27

EV to EBIT

21.10

EV to EBITDA

15.50

EV to Capital Employed

1.22

EV to Sales

1.37

PEG Ratio

Dividend Yield

2.06%

ROCE (Latest)

5.79%

ROE (Latest)

4.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-16What is not working for the Company

NET PROFIT(HY)

At CNY 111.86 MM has Grown at -36.45%

OPERATING CASH FLOW(Y)

Lowest at CNY 312.27 MM

ROCE(HY)

Lowest at 3.62%

RAW MATERIAL COST(Y)

Grown by 20.52% (YoY

CASH AND EQV(HY)

Lowest at CNY 175.26 MM

DEBT-EQUITY RATIO (HY)

Highest at 41.45 %

NET SALES(Q)

At CNY 1,228.08 MM has Fallen at -9.59%

PRE-TAX PROFIT(Q)

Lowest at CNY 88.42 MM

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

Net Profit

At CNY 111.86 MM has Grown at -36.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 312.27 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 1,228.08 MM has Fallen at -9.59%

over average net sales of the previous four periods of CNY 1,358.39 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

Lowest at CNY 88.42 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 175.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 41.45 %

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

Raw Material Cost

Grown by 20.52% (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