Shenzhen Investment Ltd. (604) 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

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Hang Lung Group Ltd.

China Vanke Co., Ltd.

China Jinmao Holdings Group Ltd.

Shenzhen Investment Ltd.

Sunac China Holdings Ltd.

Radiance Holdings (Group) Co., Ltd.

Why is Shenzhen Investment Ltd. ?

Weak Long Term Fundamental Strength with a -5.93% CAGR growth in Operating Profits

Negative results in Jun 25

ROCE(HY) Lowest at -8.69%
DEBT-EQUITY RATIO (HY) Highest at 144.73 %
RAW MATERIAL COST(Y) Grown by 50.13% (YoY)

With ROE of -4.98%, it has a Very Expensive valuation with a 0.19 Price to Book Value

Over the past year, while the stock has generated a return of -11.25%, its profits have fallen by -249.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.25% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong 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 Realty)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Shenzhen Investment Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Investment Ltd.

-100.0%

1.87

41.41%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.09%

EBIT Growth (5y)

-5.93%

EBIT to Interest (avg)

7.42

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

23.71%

ROE (avg)

4.35%

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

0.19

EV to EBIT

-1.63

EV to EBITDA

-1.42

EV to Capital Employed

-0.16

EV to Sales

-0.27

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-4.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

8What is working for the Company

NET SALES(Q)

At HKD 10,454.25 MM has Grown at 171.39%

OPERATING CASH FLOW(Y)

Highest at HKD 7,945.89 MM

PRE-TAX PROFIT(Q)

At HKD 125.61 MM has Grown at 134.75%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.26 times

-12What is not working for the Company

ROCE(HY)

Lowest at -8.69%

DEBT-EQUITY RATIO (HY)

Highest at 144.73 %

RAW MATERIAL COST(Y)

Grown by 50.13% (YoY

CASH AND EQV(HY)

Lowest at HKD 10,353.09 MM

INTEREST(Q)

Highest at HKD 731.12 MM

NET PROFIT(Q)

Lowest at HKD -6,425.47 MM

EPS(Q)

Lowest at HKD -0.29

Here's what is working for Shenzhen Investment Ltd.

Net Sales

At HKD 10,454.25 MM has Grown at 171.39%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (HKD MM)

Pre-Tax Profit

At HKD 125.61 MM has Grown at 134.75%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Operating Cash Flow

Highest at HKD 7,945.89 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Debtors Turnover Ratio

Highest at 3.26 times

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 Investment Ltd.

Net Profit

At HKD -6,425.47 MM has Fallen at -502.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (HKD MM)

Debt-Equity Ratio

Highest at 144.73 % and Grown

In each half year 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

Interest

Highest at HKD 731.12 MM

in the last five periods and Increased by 10.9% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Net Profit

Lowest at HKD -6,425.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD -0.29

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Cash and Eqv

Lowest at HKD 10,353.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 50.13% (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

Non Operating Income

Highest at HKD 3.02 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income