Shanghai Waigaoqiao reports Strong Improvement In Revenues For The Next 2-Years

The profile of the company at a glance:

Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd. [900912:CH] is a Chinese based company that engages mainly in trading of different kinds of commodities. Some of the businesses activities of the Company comprise of the leasing of real estates, real estate transfer, commodity trading and logistics businesses, as well as import and export agency businesses. Currently the company conducts its business activities through industrial parks, residential buildings, hotel properties and commercial properties, among others. The company also engages in other businesses such as the trading of automobiles, parts and components, machine tools and medical equipment, among others. The company was formed and issued a business license on January 1992 while its headquarter is situated at Shanghai, China. The company is led by Hong Liu with up to 2,815 other employees currently working for the company.

Perspective of stock performance:

From the aspect of the stock performance of Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd. [900912:CH] in the Chinese stock market, the company performs barely average as compared to the performances of other top players in the stock market. The market report for the stock market shows that the company’s stock is sold at about 13.25 CNY per stock which signifies a 24 hours price negative magnitude by -0.38% when compared to the price of the stock at same time on yesterday. The price also reveals a 12 months price positive magnitude by 10.33% YoY as compared to the price of the stock at same period within the last 12 months. The stock trends with a 52-weeks high price/low price of about 13.31 CNY and 13.12 CNY per stock respectively. The stock trends on an annual PSR rate of about 1.33x which is calculated from the total market capital of the company which stands at CNY13.59 billion whereas the total income reported in the company’s Fy20 financial result amounted to CNY10.21 billion.

The stock also trends on a 52-weeks and YTD Price Relative to S&P500 of about -18.21x and -8.85x respectively.

Perspective of environmental and business development:

From the reports of the company since the company has been incorporated, the company has increased its number of staffs by 45% as compared to the number of staffs the company started with. The company has extended its business activities to more than 97 cities while starting its business in its headquarter situated at Shanghai region.

The company currently owns more properties as compared to the inception period of the company.

Perspective of financial performance:

As regards to the financial performances of the company, over the last six years the company’s financial performance has been inconsistent and unstable in most of its financial indicators. The financial report of the Fy20 period highlights significant growth in most of the major financial indicators despite the pandemic period which most companies and businesses were temporarily closed to curtail the spread of the virus.

The financial of the Fy20 period revealed that the total income raised from business during that period increased to CNY10.21 billion, signifying an increment level by 11.85% year-on-year when compared to the CNY9.00 billion reported in the Fy19’s financial report. The net profit during that period also strongly decreased to CNY2.05 billion, signifying a decrease level by 8.48% year-on-year when compared to the CNY2.24 billion reported in the Fy19’s financial report.

Perspective of futuristic plans:

As regards to the company in the nearest future, the management of the company is frequently conducting employment exercises in order to keep employing more capable hands to improve the performance of the company. According to the press report of the company, the total income expected from business in 2021 and 2022 will amount to be CNY12.77 billion and 14.33 billion respectively. The report also expects the dividend to amount to 0.08 and 0.09 with ratios of 0.49% and 0.51% respectively in Fy21 and Fy22 periods.

References: https://www.reuters.com/companies/600648.SS/financials, https://www.bloomberg.com/profile/company/900912:CH and https://www.marketscreener.com/quote/stock/SHANGHAI-WAIGAOQIAO-FREE-6496788/company/