Chongqing Zongshen Power Machinery Co., Ltd. (001696) 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

Chongqing Zongshen Power Machinery Co., Ltd.

Why is Chongqing Zongshen Power Machinery Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.45% and Operating profit at 3.81% over the last 5 years

Positive results in Mar 25

ROCE(HY) Highest at 11.17%
INVENTORY TURNOVER RATIO(HY) Highest at 9.71%
NET SALES(Q) Highest at CNY 3,229.23 MM

With ROE of 13.69%, it has a fair valuation with a 4.11 Price to Book Value

Over the past year, while the stock has generated a return of -11.07%, its profits have risen by 90.8% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 1.1

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -11.07% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chongqing Zongshen Power Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Chongqing Zongshen Power Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chongqing Zongshen Power Machinery Co., Ltd.

-25.18%

1.44

48.64%

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)

13.45%

EBIT Growth (5y)

3.81%

EBIT to Interest (avg)

5.54

Debt to EBITDA (avg)

0.87

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

1.19

Tax Ratio

18.53%

Dividend Payout Ratio

49.64%

Pledged Shares

Institutional Holding

ROCE (avg)

9.67%

ROE (avg)

10.38%

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

4.11

EV to EBIT

30.31

EV to EBITDA

21.67

EV to Capital Employed

3.30

EV to Sales

1.89

PEG Ratio

0.33

Dividend Yield

1.06%

ROCE (Latest)

10.90%

ROE (Latest)

13.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

26What is working for the Company

ROCE(HY)

Highest at 11.17%

INVENTORY TURNOVER RATIO(HY)

Highest at 9.71%

NET SALES(Q)

Highest at CNY 3,229.23 MM

PRE-TAX PROFIT(Q)

Highest at CNY 221.71 MM

NET PROFIT(Q)

At CNY 224.11 MM has Grown at 81.82%

EPS(Q)

Highest at CNY 0.2

-1What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 21.88 %

Here's what is working for Chongqing Zongshen Power Machinery Co., Ltd.

Net Sales

Highest at CNY 3,229.23 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 9.71% 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

Net Sales

At CNY 3,229.23 MM has Grown at 23.4%

over average net sales of the previous four periods of CNY 2,616.93 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 221.71 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 224.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 224.11 MM has Grown at 81.82%

over average net sales of the previous four periods of CNY 123.26 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Chongqing Zongshen Power Machinery Co., Ltd.

Debt-Equity Ratio

Highest at 21.88 %

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