Shanghai Jiao Yun Group Co., Ltd. manufactures and sells automobile parts in China. It also offers road freight and logistics, road passenger transport, tourism, warehousing, agency, and automobile sales and after-sales services. The company was founded in 1993 and is based in Shanghai, China.

China

Shanghai Jiao Yun Group Co., Ltd.

Consumer Cyclical

The company pays dividends irregularly. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are somewhat mixed. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. 

600676.SS reported revenue of CNY 4 553mn in the last 12 months, up 3% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 5% from FY24 to CNY -0.36.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 27ppts over six months and grown 3ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported weak EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -7.9% in the last 12 months, a decline from 8.7% in FY23. 

Historically, 600676.SS has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -8.2%, down from 0.2% in FY23. 

Shanghai Jiao Yun Group Co., Ltd. reported a return on equity (RoE) of -7.0% in the last 12 months, down from 0.2% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to -6.3%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to -5.0% in the last 12 months, a decrease from 0.2% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.4 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

600676.SS has average trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is relatively stable and remains favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note low margin volatility, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, and negligible return on capital.

In highly turbulent market conditions, 600676.SS is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, 600676.SS is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to mild. We would also like to highlight the mild intraday volatility of the instrument. 

From both historical and forecast perspectives, the stock is overpriced compared to similar stocks. Specifically, the stock is overpriced on P/FCF. 

Shanghai Jiao Yun Group Co., Ltd.

CN¥ 4.39

3

Shanghai Jiao Yun Group Co., Ltd.

CN¥ 4.39

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CN¥ 4.39

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