Why is Shenzhen Megmeet Electrical Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 20.75% and Operating profit at -6.03% over the last 5 years
- INTEREST(9M) At CNY 31.02 MM has Grown at 11.33%
- ROCE(HY) Lowest at 7.57%
- RAW MATERIAL COST(Y) Grown by 7.61% (YoY)
2
With ROE of 5.33%, it has a very expensive valuation with a 6.01 Price to Book Value
- Over the past year, while the stock has generated a return of 91.35%, its profits have fallen by -26.7%
- At the current price, the company has a high dividend yield of 0.1
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 Electronics & Appliances)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Shenzhen Megmeet Electrical Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Shenzhen Megmeet Electrical Co., Ltd.
64.98%
2.97
68.84%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
20.75%
EBIT Growth (5y)
-6.03%
EBIT to Interest (avg)
11.84
Debt to EBITDA (avg)
1.19
Net Debt to Equity (avg)
0.08
Sales to Capital Employed (avg)
0.94
Tax Ratio
2.36%
Dividend Payout Ratio
5.78%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.04%
ROE (avg)
9.56%
Valuation Key Factors 
Factor
Value
P/E Ratio
113
Industry P/E
Price to Book Value
6.01
EV to EBIT
164.65
EV to EBITDA
74.39
EV to Capital Employed
5.47
EV to Sales
4.34
PEG Ratio
NA
Dividend Yield
0.07%
ROCE (Latest)
3.32%
ROE (Latest)
5.33%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 434.93 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 3.05%
DEBT-EQUITY RATIO
(HY)
Lowest at 9.45 %
DEBTORS TURNOVER RATIO(HY)
Highest at 2.99%
NET SALES(Q)
Highest at CNY 2,302.73 MM
-5What is not working for the Company
INTEREST(9M)
At CNY 31.02 MM has Grown at 11.33%
ROCE(HY)
Lowest at 7.57%
RAW MATERIAL COST(Y)
Grown by 7.61% (YoY
Here's what is working for Shenzhen Megmeet Electrical Co., Ltd.
Inventory Turnover Ratio
Highest at 3.05% and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Operating Cash Flow
Highest at CNY 434.93 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
Highest at CNY 2,302.73 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Sales
At CNY 2,302.73 MM has Grown at 26.44%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Debt-Equity Ratio
Lowest at 9.45 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 2.99%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Shenzhen Megmeet Electrical Co., Ltd.
Interest
At CNY 31.02 MM has Grown at 11.33%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Raw Material Cost
Grown by 7.61% (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






