Shenzhen Hemei Group Co., Ltd. (002356) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shenzhen Hemei Group Co., Ltd.

Why is Shenzhen Hemei Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 3.97% and Operating profit at 14.28% over the last 5 years

With a growth in Net Sales of 390.91%, the company declared Outstanding results in Jun 25

The company has declared positive results for the last 2 consecutive quarters
NET SALES(Q) At CNY 145.53 MM has Grown at 390.91%
ROCE(HY) Highest at -5.71%
DEBT-EQUITY RATIO (HY) Lowest at -72.72 %

With ROE of -6.89%, it has a risky valuation with a 3.13 Price to Book Value

Over the past year, while the stock has generated a return of -2.25%, its profits have risen by 44.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.25% 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 hold?

Overall Portfolio exposure to Shenzhen Hemei Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Shenzhen Hemei Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Hemei Group Co., Ltd.

0.95%

-0.15

48.80%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.97%

EBIT Growth (5y)

14.28%

EBIT to Interest (avg)

-28.75

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

0.43

Tax Ratio

2.92%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

28.85%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.13

EV to EBIT

-16.35

EV to EBITDA

-21.55

EV to Capital Employed

8.82

EV to Sales

2.06

PEG Ratio

Dividend Yield

ROCE (Latest)

-53.96%

ROE (Latest)

-6.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

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

30What is working for the Company

NET SALES(Q)

At CNY 145.53 MM has Grown at 390.91%

ROCE(HY)

Highest at -5.71%

DEBT-EQUITY RATIO (HY)

Lowest at -72.72 %

INVENTORY TURNOVER RATIO(HY)

Highest at 11.38%

DEBTORS TURNOVER RATIO(HY)

Highest at 9.15%

PRE-TAX PROFIT(Q)

Highest at CNY -4.43 MM

NET PROFIT(Q)

Highest at CNY -4.72 MM

EPS(Q)

Highest at CNY -0

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -40.51 MM

RAW MATERIAL COST(Y)

Grown by 74.09% (YoY

Here's what is working for Shenzhen Hemei Group Co., Ltd.

Net Sales

At CNY 145.53 MM has Grown at 390.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY -4.43 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY -4.43 MM has Grown at 74.31%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -4.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY -4.72 MM has Grown at 71.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -72.72 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 11.38%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 9.15%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Shenzhen Hemei Group Co., Ltd.

Operating Cash Flow

Lowest at CNY -40.51 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Raw Material Cost

Grown by 74.09% (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