Why is China Zhenhua (Group) Science & Technology Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 5.40% and Operating profit at 5.22% over the last 5 years
2
The company has declared negative results in Mar'2026 after 2 consecutive positive quarters
- OPERATING CASH FLOW(Y) Lowest at CNY 1,244.51 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 154.24
- NET SALES(Q) Lowest at CNY 836.89 MM
3
With ROE of 6.17%, it has a attractive valuation with a 1.77 Price to Book Value
- Over the past year, while the stock has generated a return of 10.27%, its profits have risen by 5.6%
- At the current price, the company has a high dividend yield of 0.3
How much should you buy?
- Overall Portfolio exposure to China Zhenhua (Group) Science & Technology Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is China Zhenhua (Group) Science & Technology Co., Ltd. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
China Zhenhua (Group) Science & Technology Co., Ltd.
-15.93%
0.51
44.35%
China Shanghai Composite
3.23%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
5.40%
EBIT Growth (5y)
5.22%
EBIT to Interest (avg)
47.90
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.24
Sales to Capital Employed (avg)
0.36
Tax Ratio
13.18%
Dividend Payout Ratio
20.54%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
18.06%
ROE (avg)
15.87%
Valuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
Price to Book Value
2.05
EV to EBIT
27.91
EV to EBITDA
21.44
EV to Capital Employed
2.44
EV to Sales
4.94
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
8.73%
ROE (Latest)
6.17%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -3.35% (YoY
CASH AND EQV(HY)
Highest at CNY 11,629.78 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -31.4 %
DEBTORS TURNOVER RATIO(HY)
Highest at 0.88 times
-3What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 1,280.8 MM
Here's what is working for China Zhenhua (Group) Science & Technology Co., Ltd.
Cash and Eqv
Highest at CNY 11,629.78 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -31.4 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 0.88 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -3.35% (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 China Zhenhua (Group) Science & Technology Co., Ltd.
Operating Cash Flow
Lowest at CNY 1,280.8 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
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