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 Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -31.22% and Operating profit at -208.28% over the last 5 years
The company has a negative book value of Rs 161.68 crore

The company has declared Negative results for the last 6 consecutive quarters

ROCE(HY) Lowest at -310.87%
INVENTORY TURNOVER RATIO(HY) Lowest at 39.32 times
NET SALES(Q) Lowest at CNY 63.89 MM

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 -56.31%, its profits have risen by 30.6%

Below par performance in long term as well as near term

Along with generating -56.31% 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, Low Return

Absolute

Risk Adjusted

Volatility

China Zhonghua Geotechnical Engineering Group Co., Ltd.

-55.81%

-0.53

54.85%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-31.22%

EBIT Growth (5y)

-208.28%

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)

0.42

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

-15.36

EV to EBIT

-7.66

EV to EBITDA

-8.84

EV to Capital Employed

2.26

EV to Sales

5.06

PEG Ratio

Dividend Yield

ROCE (Latest)

-29.48%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -254.98% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -1,403.13 %

OPERATING PROFIT(Q)

Highest at CNY -6.68 MM

PRE-TAX PROFIT(Q)

Highest at CNY -44.27 MM

NET PROFIT(Q)

Highest at CNY -42.18 MM

EPS(Q)

Highest at CNY -0.02

-15What is not working for the Company

ROCE(HY)

Lowest at -310.87%

INVENTORY TURNOVER RATIO(HY)

Lowest at 39.32 times

NET SALES(Q)

Lowest at CNY 63.89 MM

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

Operating Profit

Highest at CNY -6.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY -44.27 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -42.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -1,403.13 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -254.98% (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 63.89 MM has Fallen at -51.41%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 63.89 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 39.32 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio