China Zhonghua Geotechnical Engineering Group Co., Ltd. (002542) 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

China Zhonghua Geotechnical Engineering Group Co., Ltd.

Why is China Zhonghua Geotechnical Engineering Group Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -23.29% and Operating profit at -225.54% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a fall in EPS of -48.96%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 2 consecutive quarters
NET SALES(9M) At CNY 929.8 MM has Grown at -45.05%
NET PROFIT(9M) At CNY -1,112.56 MM has Grown at -86.47%
INTEREST(9M) At CNY 92.37 MM has Grown at 28.07%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -45.45%, its profits have fallen by -51.1%

Below par performance in long term as well as near term

Along with generating -45.45% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Construction)

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

Is China Zhonghua Geotechnical Engineering Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

China Zhonghua Geotechnical Engineering Group Co., Ltd.

-35.07%

1.60

59.98%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-23.29%

EBIT Growth (5y)

-225.54%

EBIT to Interest (avg)

-4.27

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

2.84

Sales to Capital Employed (avg)

0.43

Tax Ratio

7.56%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.21%

ROE (avg)

0.91%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

8.46

EV to EBIT

-6.53

EV to EBITDA

-7.18

EV to Capital Employed

2.72

EV to Sales

6.78

PEG Ratio

Dividend Yield

ROCE (Latest)

-41.60%

ROE (Latest)

-183.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 699.31 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 58.81%

-33What is not working for the Company

NET SALES(9M)

At CNY 929.8 MM has Grown at -45.05%

NET PROFIT(9M)

At CNY -1,112.56 MM has Grown at -86.47%

INTEREST(9M)

At CNY 92.37 MM has Grown at 28.07%

ROCE(HY)

Lowest at -95.15%

RAW MATERIAL COST(Y)

Grown by 91.28% (YoY

CASH AND EQV(HY)

Lowest at CNY 710.29 MM

DEBT-EQUITY RATIO (HY)

Highest at 285.66 %

Here's what is working for China Zhonghua Geotechnical Engineering Group Co., Ltd.

Inventory Turnover Ratio

Highest at 58.81% 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

Operating Cash Flow

Highest at CNY 699.31 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for China Zhonghua Geotechnical Engineering Group Co., Ltd.

Net Profit

At CNY -1,178.88 MM has Grown at -141.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 64.55 MM has Grown at 66.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 128.65 MM has Fallen at -35.83%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 128.65 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 710.29 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 285.66 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 91.28% (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