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

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 7.07% and Operating profit at -2.54% over the last 5 years

Flat results in Mar 26

NET PROFIT(HY) At CNY 78.57 MM has Grown at -74.22%

With ROE of 11.18%, it has a expensive valuation with a 2.52 Price to Book Value

Over the past year, while the stock has generated a return of -15.02%, its profits have fallen by -1.1%
At the current price, the company has a high dividend yield of 1.6

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 16.83% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -15.02% returns

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 Auto Components & Equipments)

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chongqing Zongshen Power Machinery Co., Ltd.

-36.03%

1.07

45.49%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.07%

EBIT Growth (5y)

-2.54%

EBIT to Interest (avg)

5.38

Debt to EBITDA (avg)

1.00

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

1.28

Tax Ratio

17.06%

Dividend Payout Ratio

34.41%

Pledged Shares

Institutional Holding

ROCE (avg)

8.74%

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

4.90

EV to EBIT

46.50

EV to EBITDA

32.50

EV to Capital Employed

4.26

EV to Sales

2.32

PEG Ratio

Dividend Yield

0.84%

ROCE (Latest)

9.16%

ROE (Latest)

11.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Mildly Bullish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,615.82 MM

CASH AND EQV(HY)

Highest at CNY 4,559.6 MM

DEBT-EQUITY RATIO (HY)

Lowest at 27.45 %

NET SALES(Q)

Highest at CNY 3,519.05 MM

PRE-TAX PROFIT(Q)

At CNY 250.65 MM has Grown at 59.79%

NET PROFIT(Q)

At CNY 248.43 MM has Grown at 63.01%

-7What is not working for the Company

NET PROFIT(9M)

At CNY 327 MM has Grown at -44.09%

RAW MATERIAL COST(Y)

Grown by 5.5% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.72 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.22 times

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

Operating Cash Flow

Highest at CNY 1,615.82 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 3,519.05 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 250.65 MM has Grown at 59.79%

over average net sales of the previous four periods of CNY 156.86 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 248.43 MM has Grown at 63.01%

over average net sales of the previous four periods of CNY 152.4 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 4,559.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 27.45 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

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

Inventory Turnover Ratio

Lowest at 8.72 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 5.5% (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