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

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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 8.02% and Operating profit at -226.55% over the last 5 years

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

DEBT-EQUITY RATIO (HY) Highest at 87.95 %
INVENTORY TURNOVER RATIO(HY) Lowest at 10.4%
OPERATING PROFIT(Q) Lowest at CNY -32.1 MM

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 88.44%, 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.

88.44%

2.22

51.26%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.02%

EBIT Growth (5y)

-226.55%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

41.95

Net Debt to Equity (avg)

0.88

Sales to Capital Employed (avg)

1.00

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

2.14

EV to EBIT

-46.30

EV to EBITDA

70.45

EV to Capital Employed

1.74

EV to Sales

1.74

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.75%

ROE (Latest)

-4.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

6What is working for the Company

NET PROFIT(HY)

Higher at CNY -23.48 MM

NET SALES(Q)

Highest at CNY 1,583.17 MM

-30What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 87.95 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.4%

OPERATING PROFIT(Q)

Lowest at CNY -32.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.03 %

PRE-TAX PROFIT(Q)

At CNY -53.51 MM has Fallen at -51.74%

RAW MATERIAL COST(Y)

Grown by 12.58% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.09%

INTEREST(Q)

Highest at CNY 19.17 MM

NET PROFIT(Q)

Lowest at CNY -28.56 MM

EPS(Q)

Lowest at CNY -0.14

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

Net Sales

Highest at CNY 1,583.17 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Shinghwa Advanced Material Group Co., Ltd.

Net Profit

At CNY -28.56 MM has Fallen at -795.52%

over average net sales of the previous four periods of CNY 4.11 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -32.1 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.03 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY -53.51 MM has Fallen at -51.74%

over average net sales of the previous four periods of CNY -35.26 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 87.95 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 10.4% 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

Interest

Highest at CNY 19.17 MM

in the last five periods and Increased by 6.23% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

Lowest at CNY -28.56 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.14

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 4.09%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 12.58% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales