Shenzhen WorldUnion Group, Inc. (002285) 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 WorldUnion Group, Inc.

Why is Shenzhen WorldUnion Group, Inc. ?

Poor Management Efficiency with a low ROCE of 1.15%

The company has been able to generate a Return on Capital Employed (avg) of 1.15% 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 -21.90% and Operating profit at -200.45% over the last 5 years

With a fall in Net Sales of -20.92%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 4 consecutive quarters
NET PROFIT(HY) At CNY -428.27 MM has Grown at -178.87%
OPERATING CASH FLOW(Y) Lowest at CNY 58.47 MM
ROCE(HY) Lowest at -25.61%

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 3.26%, its profits have fallen by -229%

Underperformed the market in the last 1 year

The stock has generated a return of 3.26% in the last 1 year, much lower than market (China Shanghai Composite) returns of 23.91%

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 Realty)

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

Is Shenzhen WorldUnion Group, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shenzhen WorldUnion Group, Inc.

3.26%

0.49

49.41%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-21.90%

EBIT Growth (5y)

-200.45%

EBIT to Interest (avg)

-3.83

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.15%

ROE (avg)

0.50%

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

2.25

EV to EBIT

-14.00

EV to EBITDA

-16.89

EV to Capital Employed

2.92

EV to Sales

2.15

PEG Ratio

Dividend Yield

ROCE (Latest)

-20.83%

ROE (Latest)

-29.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

5What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 2.7 MM has Grown at 156.04%

RAW MATERIAL COST(Y)

Fallen by -41.33% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 2.08 times

NET PROFIT(Q)

At CNY -4.04 MM has Grown at 62.1%

-29What is not working for the Company

NET PROFIT(HY)

At CNY -428.27 MM has Grown at -178.87%

OPERATING CASH FLOW(Y)

Lowest at CNY 58.47 MM

ROCE(HY)

Lowest at -25.61%

CASH AND EQV(HY)

Lowest at CNY 1,932.29 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 116.18 times

NET SALES(Q)

Lowest at CNY 392.73 MM

Here's what is working for Shenzhen WorldUnion Group, Inc.

Pre-Tax Profit

At CNY 2.7 MM has Grown at 156.04%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -4.04 MM has Grown at 62.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 2.08 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -41.33% (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 WorldUnion Group, Inc.

Net Sales

At CNY 392.73 MM has Fallen at -20.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 58.47 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 392.73 MM has Fallen at -20.04%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 392.73 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 1,932.29 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 116.18 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 3.37 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income