Shinghwa Advanced Material Group Co., Ltd. (603026) 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

Shinghwa Advanced Material Group Co., Ltd.

Why is Shinghwa Advanced Material Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.46% and Operating profit at -214.28% over the last 5 years

The company has declared Negative results for the last 10 consecutive quarters

NET PROFIT(HY) At CNY -33.81 MM has Grown at -106%
INTEREST(HY) At CNY 36.11 MM has Grown at 33.83%
ROCE(HY) Lowest at -1.31%

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 67.42%, its profits have fallen by -214.6%

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 Specialty Chemicals)

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

Is Shinghwa Advanced Material Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shinghwa Advanced Material Group Co., Ltd.

120.85%

1.47

53.34%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.46%

EBIT Growth (5y)

-214.28%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

41.95

Net Debt to Equity (avg)

0.88

Sales to Capital Employed (avg)

0.93

Tax Ratio

32.89%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

23.65%

ROE (avg)

15.09%

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

2.58

EV to EBIT

-54.05

EV to EBITDA

82.25

EV to Capital Employed

2.03

EV to Sales

2.04

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.75%

ROE (Latest)

-4.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 132.37 MM

RAW MATERIAL COST(Y)

Fallen by -169.57% (YoY

NET SALES(Q)

Highest at CNY 1,624.4 MM

PRE-TAX PROFIT(Q)

Highest at CNY -22.15 MM

NET PROFIT(Q)

At CNY -6.04 MM has Grown at 69.05%

-24What is not working for the Company

NET PROFIT(HY)

At CNY -33.81 MM has Grown at -106%

INTEREST(HY)

At CNY 36.11 MM has Grown at 33.83%

ROCE(HY)

Lowest at -1.31%

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.57 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.42 times

OPERATING PROFIT(Q)

Lowest at CNY -25.88 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.59 %

Here's what is working for Shinghwa Advanced Material Group Co., Ltd.

Operating Cash Flow

Highest at CNY 132.37 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 1,624.4 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY -22.15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY -22.15 MM has Grown at 63.44%

over average net sales of the previous four periods of CNY -60.59 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -6.04 MM has Grown at 69.05%

over average net sales of the previous four periods of CNY -19.52 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -169.57% (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 Shinghwa Advanced Material Group Co., Ltd.

Interest

At CNY 36.11 MM has Grown at 33.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 9.57 times and Fallen

In each half year 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 3.42 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY -25.88 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -1.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales