Shenzhen Nanshan Power Co., Ltd. (000037) 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 Nanshan Power Co., Ltd.

Why is Shenzhen Nanshan Power Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.09%

The company has been able to generate a Return on Capital Employed (avg) of 0.09% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -12.46% and Operating profit at -215.79% over the last 5 years

With ROE of 17.06%, it has a expensive valuation with a 2.08 Price to Book Value

Over the past year, while the stock has generated a return of 3.21%, its profits have risen by 258.5% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 3.21% in the last 1 year, much lower than market (China Shanghai Composite) returns of 16.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Nanshan Power Co., Ltd. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

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

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

Is Shenzhen Nanshan Power Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Nanshan Power Co., Ltd.

10.85%

-0.28

48.95%

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)

-12.46%

EBIT Growth (5y)

-215.79%

EBIT to Interest (avg)

-9.44

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

0.25

Tax Ratio

5.32%

Dividend Payout Ratio

11.98%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

1.78%

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

2.08

EV to EBIT

-186.65

EV to EBITDA

325.79

EV to Capital Employed

2.25

EV to Sales

7.58

PEG Ratio

0.05

Dividend Yield

0.31%

ROCE (Latest)

-1.20%

ROE (Latest)

17.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

20What is working for the Company

NET PROFIT(HY)

At CNY 19.35 MM has Grown at 188.99%

OPERATING CASH FLOW(Y)

Highest at CNY -35.44 MM

NET SALES(HY)

At CNY 201.81 MM has Grown at 21.29%

ROCE(HY)

Highest at 12.88%

RAW MATERIAL COST(Y)

Fallen by -3,583.33% (YoY

-13What is not working for the Company

INTEREST(HY)

At CNY 5.19 MM has Grown at 38.74%

PRE-TAX PROFIT(Q)

At CNY 2.3 MM has Fallen at -96.83%

NET PROFIT(Q)

At CNY 7.69 MM has Fallen at -83.37%

Here's what is working for Shenzhen Nanshan Power Co., Ltd.

Operating Cash Flow

Highest at CNY -35.44 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 201.81 MM has Grown at 21.29%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -3,583.33% (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 Nanshan Power Co., Ltd.

Interest

At CNY 5.19 MM has Grown at 38.74%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 2.3 MM has Fallen at -96.83%

over average net sales of the previous four periods of CNY 72.46 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 7.69 MM has Fallen at -83.37%

over average net sales of the previous four periods of CNY 46.25 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Non Operating Income

Highest at CNY 2.06 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income