Shenzhen Magic Design & Decoration Engineering Co., Ltd. (002856) 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 Magic Design & Decoration Engineering Co., Ltd.

Why is Shenzhen Magic Design & Decoration Engineering Co., Ltd. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -24.14% and Operating profit at -236.86% over the last 5 years
The company has a negative book value of Rs 50.89 crore

Negative results in Mar 26

INTEREST(HY) At CNY 26.37 MM has Grown at 63.45%
OPERATING CASH FLOW(Y) Lowest at CNY -217.13 MM
ROCE(HY) Lowest at -1,105.62%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 89.07%, its profits have risen by 35.1%

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 Construction)

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

Is Shenzhen Magic Design & Decoration Engineering Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Magic Design & Decoration Engineering Co., Ltd.

119.7%

2.57

52.79%

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)

-24.14%

EBIT Growth (5y)

-236.86%

EBIT to Interest (avg)

-8.40

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

2.27

Tax Ratio

29.56%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.67%

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

-46.56

EV to EBIT

-14.48

EV to EBITDA

-15.85

EV to Capital Employed

-69.90

EV to Sales

6.92

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

4What is working for the Company

NET PROFIT(HY)

Higher at CNY -28.87 MM

RAW MATERIAL COST(Y)

Fallen by -71.02% (YoY

-21What is not working for the Company

INTEREST(HY)

At CNY 10.26 MM has Grown at 104.89%

NET SALES(Q)

At CNY 60.6 MM has Fallen at -29.7%

OPERATING CASH FLOW(Y)

Lowest at CNY -211.97 MM

ROCE(HY)

Lowest at -2,181.67%

INVENTORY TURNOVER RATIO(HY)

Lowest at 19.52 times

Here's what is working for Shenzhen Magic Design & Decoration Engineering Co., Ltd.

Net Profit

Higher at CNY -28.87 MM

than preceding 12 month period ended Jun 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -71.02% (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 Magic Design & Decoration Engineering Co., Ltd.

Interest

At CNY 10.26 MM has Grown at 104.89%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 60.6 MM has Fallen at -29.7%

over average net sales of the previous four periods of CNY 86.2 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 19.52 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at CNY -211.97 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)