Shanghai Aj GroupLtd (SHSE:600643) - Share price, News & Analysis

Q: What is the Fair Price of 600643 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

600643 (CN¥5.91) is trading below our estimate of [[fair value]] (CN¥13.24)

600643 fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	1/6
Past Performance	1/6
Financial Health	4/6
Dividends	3/6

600643 Stock Overview

Shanghai Aj Group Co.,Ltd provides wealth and asset management services primarily for the financial industry in China.

Rewards

Trading at 55.4% below our estimate of its fair value

Earnings are forecast to grow 10.87% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 3.72% is not well covered by earnings

Large one-off items impacting financial results

Shanghai Aj GroupLtd Competitors

AVIC Industry-Finance Holdings

SHSE:600705

CN¥30.6b

Jiangsu Financial Leasing

SHSE:600901

CN¥15.7b

Ruida Futures

SZSE:002961

CN¥7.8b

Shaanxi International TrustLtd

SZSE:000563

CN¥12.3b

Price History & Performance

Summary of all time highs, changes and price drops for Shanghai Aj GroupLtd
Historical stock prices
Current Share Price	CN¥5.91
52 Week High	CN¥7.74
52 Week Low	CN¥5.63
Beta	0.56
1 Month Change	-2.80%
3 Month Change	-11.79%
1 Year Change	-13.34%
3 Year Change	-38.88%
5 Year Change	n/a
Change since IPO	168.71%

Shareholder Returns

	600643	CN Diversified Financial	CN Market
7D	-0.7%	-1.3%	2.3%
1Y	-13.3%	-6.0%	-8.1%

Return vs Industry: 600643 underperformed the CN Diversified Financial industry which returned -6% over the past year.

Return vs Market: 600643 underperformed the CN Market which returned -8.1% over the past year.

Price Volatility

Is 600643's price volatile compared to industry and market?
600643 volatility
600643 Average Weekly Movement	4.0%
Diversified Financial Industry Average Movement	5.7%
Market Average Movement	7.3%
10% most volatile stocks in CN Market	10.2%
10% least volatile stocks in CN Market	5.1%

Stable Share Price: 600643 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 600643's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1979	886	n/a	https://www.aj.com.cn

Shanghai Aj Group Co.,Ltd provides wealth and asset management services primarily for the financial industry in China. The company offers investment management, business and technical consulting, technical, property management, and business management consulting services; and financial leasing, leased properties purchasing, residual value of leased properties disposal and maintenance, and consulting and guarantees for leasing and rental transactions. It also provides industrial investment, international freight forwarding, and domestic trade services; real estate development and management; and imports and exports various commodities and technologies.

Shanghai Aj GroupLtd Fundamentals Summary

How do Shanghai Aj GroupLtd's earnings and revenue compare to its market cap?
600643 fundamental statistics
Market Cap	CN¥9.56b
Earnings (TTM)	CN¥1.12b
Revenue (TTM)	CN¥4.00b

8.5x

P/E Ratio

2.4x

P/S Ratio

Is 600643 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
600643 income statement (TTM)
Revenue	CN¥4.00b
Cost of Revenue	CN¥1.42b
Gross Profit	CN¥2.57b
Other Expenses	CN¥1.45b
Earnings	CN¥1.12b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.70
Gross Margin	64.43%
Net Profit Margin	28.10%
Debt/Equity Ratio	96.9%

How did 600643 perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

32%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 600643 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600643?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 600643. This is calculated by dividing 600643's market cap by their current preferred multiple.
What is 600643's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥9.56b

600643 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.9x
Enterprise Value/EBITDA	10.9x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does 600643's PE Ratio compare to its peers?

600643 PE Ratio vs Peers

The above table shows the PE ratio for 600643 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.8x
600705 AVIC Industry-Finance Holdings	8x	14.7%	CN¥30.6b
600901 Jiangsu Financial Leasing	7.3x	15.7%	CN¥15.7b
002961 Ruida Futures	15.2x	36.5%	CN¥7.8b
000563 Shaanxi International TrustLtd	16.8x	n/a	CN¥12.3b
600643 Shanghai Aj GroupLtd	8.5x	10.9%	CN¥9.5b

Forward PE

Price-To-Earnings vs Peers: 600643 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (11.8x).

Price to Earnings Ratio vs Industry

How does 600643's PE Ratio compare vs other companies in the Asian Diversified Financial Industry?

Price-To-Earnings vs Industry: 600643 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the Asian Diversified Financial industry average (14.2x)

Price to Earnings Ratio vs Fair Ratio

What is 600643's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

600643 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.5x
Fair PE Ratio	15.6x

Price-To-Earnings vs Fair Ratio: 600643 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).

Share Price vs Fair Value

What is the Fair Price of 600643 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600643 (CN¥5.91) is trading below our estimate of fair value (CN¥13.24)

Significantly Below Fair Value: 600643 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 600643 is good value based on its PEG Ratio (0.8x)

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Future Growth

How is Shanghai Aj GroupLtd forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600643's forecast earnings growth (10.9% per year) is above the savings rate (3.2%).

Earnings vs Market: 600643's earnings (10.9% per year) are forecast to grow slower than the CN market (23.9% per year).

High Growth Earnings: 600643's earnings are forecast to grow, but not significantly.

Revenue vs Market: 600643's revenue (9.7% per year) is forecast to grow slower than the CN market (17.5% per year).

High Growth Revenue: 600643's revenue (9.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if 600643's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Shanghai Aj GroupLtd performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 600643 has a large one-off gain of CN¥268.3M impacting its March 31 2022 financial results.

Growing Profit Margin: 600643's current net profit margins (28.1%) are lower than last year (29.2%).

Past Earnings Growth Analysis

Earnings Trend: 600643's earnings have grown by 12.2% per year over the past 5 years.

Accelerating Growth: 600643's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 600643 had negative earnings growth (-19.3%) over the past year, making it difficult to compare to the Diversified Financial industry average (21.7%).

Return on Equity

High ROE: 600643's Return on Equity (8.9%) is considered low.

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Financial Health

How is Shanghai Aj GroupLtd's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 600643's short term assets (CN¥12.2B) exceed its short term liabilities (CN¥9.1B).

Long Term Liabilities: 600643's short term assets (CN¥12.2B) exceed its long term liabilities (CN¥5.3B).

Debt to Equity History and Analysis

Debt Level: 600643's net debt to equity ratio (74.7%) is considered high.

Reducing Debt: 600643's debt to equity ratio has reduced from 97.1% to 96.9% over the past 5 years.

Debt Coverage: 600643's debt is not well covered by operating cash flow (14%).

Interest Coverage: 600643's interest payments on its debt are well covered by EBIT (6.3x coverage).

Balance Sheet

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Dividend

What is Shanghai Aj GroupLtd current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.72%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 600643's dividend (3.72%) is higher than the bottom 25% of dividend payers in the CN market (0.47%).

High Dividend: 600643's dividend (3.72%) is in the top 25% of dividend payers in the CN market (1.92%)

Stability and Growth of Payments

Stable Dividend: 600643 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 600643's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.6%), 600643's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 600643 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure

CEO

Shanghai Aj GroupLtd has no CEO, or we have no data on them.

Leadership Team

Experienced Management: 600643's management team is seasoned and experienced (8.3 years average tenure).

Board Members

Experienced Board: 600643's board of directors are considered experienced (5.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/01 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31