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 12.04% and Operating profit at 2.66% over the last 5 years

With a growth in Net Profit of 50.17%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 2 consecutive quarters
NET SALES(HY) At CNY 6,396.41 MM has Grown at 26.07%
NET PROFIT(HY) At CNY 531.03 MM has Grown at 82.1%
ROCE(HY) Highest at 15.92%

With ROE of 13.69%, it has a fair valuation with a 5.45 Price to Book Value

Over the past year, while the stock has generated a return of -16.73%, its profits have risen by 90.8% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0.8

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 13.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -16.73% 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.

-15.13%

0.96

40.38%

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)

12.04%

EBIT Growth (5y)

2.66%

EBIT to Interest (avg)

5.54

Debt to EBITDA (avg)

0.87

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

1.22

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

5.45

EV to EBIT

39.47

EV to EBITDA

28.22

EV to Capital Employed

4.30

EV to Sales

2.46

PEG Ratio

0.44

Dividend Yield

0.80%

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

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

15What is working for the Company

NET SALES(HY)

At CNY 6,396.41 MM has Grown at 26.07%

NET PROFIT(HY)

At CNY 531.03 MM has Grown at 82.1%

ROCE(HY)

Highest at 15.92%

INVENTORY TURNOVER RATIO(HY)

Highest at 10 times

RAW MATERIAL COST(Y)

Fallen by -7.15% (YoY

-4What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 33.01 %

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

Net Sales

At CNY 6,396.41 MM has Grown at 26.07%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 531.03 MM has Grown at 82.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 10 times 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

Raw Material Cost

Fallen by -7.15% (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 Chongqing Zongshen Power Machinery Co., Ltd.

Debt-Equity Ratio

Highest at 33.01 % and Grown

In each half year 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