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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

ADD Industry (Zhejiang) Corp. Ltd.

-22.17%

1.01

45.22%

China Shanghai Composite

21.43%

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)

17.11%

EBIT Growth (5y)

-1.40%

EBIT to Interest (avg)

4.07

Debt to EBITDA (avg)

2.94

Net Debt to Equity (avg)

0.79

Sales to Capital Employed (avg)

0.94

Tax Ratio

14.51%

Dividend Payout Ratio

21.99%

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

1.11

EV to EBIT

37.93

EV to EBITDA

12.81

EV to Capital Employed

1.08

EV to Sales

1.00

PEG Ratio

Dividend Yield

1.07%

ROCE (Latest)

2.84%

ROE (Latest)

3.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 871.13 MM

DEBT-EQUITY RATIO (HY)

Lowest at 40.99 %

-24What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 74.33 MM

PRE-TAX PROFIT(Q)

At CNY -24.48 MM has Fallen at -168.6%

NET PROFIT(Q)

At CNY -17.88 MM has Fallen at -167.84%

INTEREST(Q)

At CNY 7.66 MM has Grown at 13.8%

INTEREST COVERAGE RATIO(Q)

Lowest at 69.29

RAW MATERIAL COST(Y)

Grown by 19.34% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 5.31 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.81 %

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

Cash and Eqv

Highest at CNY 871.13 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 40.99 %

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 -24.48 MM has Fallen at -168.6%

over average net sales of the previous four periods of CNY 35.68 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -17.88 MM has Fallen at -167.84%

over average net sales of the previous four periods of CNY 26.36 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 74.33 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 7.66 MM has Grown at 13.8%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 69.29

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 5.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.81 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 19.34% (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