ADD Industry (Zhejiang) Corp. Ltd. (603089) 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

ADD Industry (Zhejiang) Corp. Ltd.

Why is ADD Industry (Zhejiang) Corp. Ltd. ?

With ROE of 13.49%, it has a very attractive valuation with a 2.33 Price to Book Value

Over the past year, while the stock has generated a return of 33.75%, its profits have risen by 239.4% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.6

Market Beating Performance

The stock has generated a return of 33.75% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to ADD Industry (Zhejiang) Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ADD Industry (Zhejiang) Corp. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

ADD Industry (Zhejiang) Corp. Ltd.

36.92%

0.85

49.97%

China Shanghai Composite

15.19%

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)

21.13%

EBIT Growth (5y)

11.31%

EBIT to Interest (avg)

4.07

Debt to EBITDA (avg)

2.94

Net Debt to Equity (avg)

0.79

Sales to Capital Employed (avg)

0.90

Tax Ratio

14.51%

Dividend Payout Ratio

31.31%

Pledged Shares

Institutional Holding

ROCE (avg)

5.13%

ROE (avg)

7.54%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.33

EV to EBIT

23.71

EV to EBITDA

12.08

EV to Capital Employed

1.83

EV to Sales

1.63

PEG Ratio

0.07

Dividend Yield

0.65%

ROCE (Latest)

7.71%

ROE (Latest)

13.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

23What is working for the Company

NET SALES(HY)

At CNY 1,269.83 MM has Grown at 41.77%

NET PROFIT(HY)

Higher at CNY 54.93 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.45%

RAW MATERIAL COST(Y)

Fallen by 1.06% (YoY

EPS(Q)

Highest at CNY 0.14

-13What is not working for the Company

INTEREST(HY)

At CNY 17.89 MM has Grown at 22.22%

OPERATING CASH FLOW(Y)

Lowest at CNY 195.46 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 483.15

OPERATING PROFIT(Q)

Lowest at CNY 40.69 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.66 %

Here's what is working for ADD Industry (Zhejiang) Corp. Ltd.

Net Sales

At CNY 1,269.83 MM has Grown at 41.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 3.45% and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

Highest at CNY 30.21 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 30.21 MM has Grown at 69.08%

over average net sales of the previous four periods of CNY 17.87 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by 1.06% (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 ADD Industry (Zhejiang) Corp. Ltd.

Interest

At CNY 17.89 MM has Grown at 22.22%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 483.15

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 195.46 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 40.69 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.66 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales