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

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 2.58 Price to Book Value

Over the past year, while the stock has generated a return of 24.28%, 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

Consistent Returns over the last 3 years

Along with generating 24.28% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

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.

15.35%

1.01

45.22%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.93%

EBIT Growth (5y)

11.41%

EBIT to Interest (avg)

4.07

Debt to EBITDA (avg)

2.94

Net Debt to Equity (avg)

0.79

Sales to Capital Employed (avg)

0.92

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

2.58

EV to EBIT

25.77

EV to EBITDA

13.13

EV to Capital Employed

1.99

EV to Sales

1.77

PEG Ratio

0.08

Dividend Yield

0.58%

ROCE (Latest)

7.71%

ROE (Latest)

13.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

19What is working for the Company

NET SALES(HY)

At CNY 1,455.97 MM has Grown at 19.52%

NET PROFIT(HY)

Higher at CNY 101.71 MM

ROCE(HY)

Highest at 11.6%

CASH AND EQV(HY)

Highest at CNY 411.19 MM

DEBT-EQUITY RATIO (HY)

Lowest at 62.24 %

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 460.96

RAW MATERIAL COST(Y)

Grown by 16.43% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.29 times

OPERATING PROFIT(Q)

Lowest at CNY 28.72 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.01 %

PRE-TAX PROFIT(Q)

Lowest at CNY 19.51 MM

NET PROFIT(Q)

Lowest at CNY 13.41 MM

EPS(Q)

Lowest at CNY 0.06

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

Net Sales

At CNY 1,455.97 MM has Grown at 19.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 411.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 62.24 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for ADD Industry (Zhejiang) Corp. Ltd.

Pre-Tax Profit

At CNY 19.51 MM has Fallen at -66.76%

over average net sales of the previous four periods of CNY 58.69 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 13.41 MM has Fallen at -67.92%

over average net sales of the previous four periods of CNY 41.8 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 460.96

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 28.72 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 19.51 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 13.41 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 3.29 times

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 16.43% (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