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

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 -26.69% and Operating profit at -229.29% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a fall in Net Sales of -31.51%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
NET SALES(Q) At CNY 307 MM has Fallen at -31.51%
PRE-TAX PROFIT(Q) At CNY -155.58 MM has Fallen at -323.84%
NET PROFIT(Q) At CNY -137.53 MM has Fallen at -307.36%

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 -22.01%, its profits have fallen by -51.1%

Below par performance in long term as well as near term

Along with generating -22.01% 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.

-20.38%

1.06

47.97%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-26.69%

EBIT Growth (5y)

-229.29%

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

8.87

EV to EBIT

-6.76

EV to EBITDA

-7.43

EV to Capital Employed

2.81

EV to Sales

7.02

PEG Ratio

Dividend Yield

ROCE (Latest)

-41.60%

ROE (Latest)

-183.79%

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

Mildly Bearish

OBV

No Trend

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

4What is working for the Company

NET PROFIT(HY)

Higher at CNY -243.99 MM

RAW MATERIAL COST(Y)

Fallen by -130.91% (YoY

-32What is not working for the Company

NET SALES(Q)

At CNY 307 MM has Fallen at -31.51%

PRE-TAX PROFIT(Q)

At CNY -155.58 MM has Fallen at -323.84%

NET PROFIT(Q)

At CNY -137.53 MM has Fallen at -307.36%

OPERATING CASH FLOW(Y)

Lowest at CNY 13.43 MM

ROCE(HY)

Lowest at -117.34%

CASH AND EQV(HY)

Lowest at CNY 525.42 MM

DEBT-EQUITY RATIO (HY)

Highest at 436.54 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.29 times

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

Raw Material Cost

Fallen by -130.91% (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 Zhonghua Geotechnical Engineering Group Co., Ltd.

Net Sales

At CNY 307 MM has Fallen at -31.51%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -155.58 MM has Fallen at -323.84%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -137.53 MM has Fallen at -307.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 13.43 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 525.42 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 436.54 %

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

Debtors Turnover Ratio

Lowest at 0.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio