Shenzhen SEG Co., Ltd. (000058) 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 SEG Co., Ltd.

Why is Shenzhen SEG Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 8.11%

The company has been able to generate a Return on Capital Employed (avg) of 8.11% 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 2.65% and Operating profit at -6.99% over the last 5 years

The company has declared positive results in Mar'2025 after 5 consecutive negative quarters

NET PROFIT(Q) At CNY 22.88 MM has Grown at 143.69%
RAW MATERIAL COST(Y) Fallen by -19.85% (YoY)
PRE-TAX PROFIT(Q) At CNY 45.88 MM has Grown at 69.48%

With ROE of 1.92%, it has a very expensive valuation with a 4.43 Price to Book Value

Over the past year, while the stock has generated a return of 1.47%, its profits have risen by 136.2% ; the PEG ratio of the company is 1.7
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 1.47% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen SEG Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Shenzhen SEG Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen SEG Co., Ltd.

-5.77%

1.65

42.29%

China Shanghai Composite

15.19%

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)

2.65%

EBIT Growth (5y)

-6.99%

EBIT to Interest (avg)

1.97

Debt to EBITDA (avg)

0.11

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.62

Tax Ratio

58.94%

Dividend Payout Ratio

40.98%

Pledged Shares

Institutional Holding

ROCE (avg)

8.11%

ROE (avg)

3.77%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

230

Industry P/E

Price to Book Value

4.43

EV to EBIT

61.90

EV to EBITDA

28.34

EV to Capital Employed

4.89

EV to Sales

5.39

PEG Ratio

1.69

Dividend Yield

0.14%

ROCE (Latest)

7.90%

ROE (Latest)

1.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

14What is working for the Company

NET PROFIT(Q)

At CNY 22.88 MM has Grown at 143.69%

RAW MATERIAL COST(Y)

Fallen by -19.85% (YoY

PRE-TAX PROFIT(Q)

At CNY 45.88 MM has Grown at 69.48%

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 246.12 MM

CASH AND EQV(HY)

Lowest at CNY 1,985.65 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.78%

NET SALES(Q)

Lowest at CNY 351.25 MM

OPERATING PROFIT(Q)

Lowest at CNY 56.29 MM

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

Net Profit

At CNY 22.88 MM has Grown at 143.69%

over average net sales of the previous four periods of CNY 9.39 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 45.88 MM has Grown at 69.48%

over average net sales of the previous four periods of CNY 27.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -19.85% (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 SEG Co., Ltd.

Net Sales

At CNY 351.25 MM has Fallen at -16.42%

over average net sales of the previous four periods of CNY 420.24 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 246.12 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 351.25 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 56.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Cash and Eqv

Lowest at CNY 1,985.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0.78%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio