Shenzhen Mingdiao Decoration Co., Ltd. (002830) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shenzhen Mingdiao Decoration Co., Ltd.

Why is Shenzhen Mingdiao Decoration Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -5.46% and Operating profit at 36.90% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.38% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(9M) At CNY 0.07 MM has Grown at 280.63%
NET PROFIT(HY) At CNY 19.46 MM has Grown at -24.85%
INVENTORY TURNOVER RATIO(HY) Lowest at 29.29%

With ROE of 4.68%, it has a very expensive valuation with a 0.87 Price to Book Value

Over the past year, while the stock has generated a return of 39.78%, its profits have fallen by -18.8%
At the current price, the company has a high dividend yield of 5.9

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 Mingdiao Decoration Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Mingdiao Decoration Co., Ltd.

45.38%

2.04

39.67%

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)

-5.46%

EBIT Growth (5y)

36.90%

EBIT to Interest (avg)

28.25

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.33

Sales to Capital Employed (avg)

1.08

Tax Ratio

18.10%

Dividend Payout Ratio

80.75%

Pledged Shares

Institutional Holding

ROCE (avg)

37.64%

ROE (avg)

5.38%

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

0.87

EV to EBIT

-12.59

EV to EBITDA

-5.37

EV to Capital Employed

1.26

EV to Sales

-0.61

PEG Ratio

Dividend Yield

5.91%

ROCE (Latest)

-10.00%

ROE (Latest)

4.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly 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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 107.9 MM

RAW MATERIAL COST(Y)

Fallen by -41.21% (YoY

-22What is not working for the Company

INTEREST(9M)

At CNY 0.07 MM has Grown at 280.63%

NET PROFIT(HY)

At CNY 19.46 MM has Grown at -24.85%

INVENTORY TURNOVER RATIO(HY)

Lowest at 29.29%

DEBTORS TURNOVER RATIO(HY)

Lowest at 52.75%

NET SALES(Q)

Lowest at CNY 116.46 MM

OPERATING PROFIT(Q)

Lowest at CNY 2.74 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.36 %

EPS(Q)

Lowest at CNY 0.02

Here's what is working for Shenzhen Mingdiao Decoration Co., Ltd.

Operating Cash Flow

Highest at CNY 107.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -41.21% (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 Mingdiao Decoration Co., Ltd.

Interest

At CNY 0.07 MM has Grown at 280.63%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 19.46 MM has Grown at -24.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 116.46 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -10.55%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 2.74 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at CNY 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 29.29%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 52.75%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio