Dongzhu Ecological Environment Protection Co., Ltd. (603359) 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

Dongzhu Ecological Environment Protection Co., Ltd.

Why is Dongzhu Ecological Environment Protection Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.46%

The company has been able to generate a Return on Capital Employed (avg) of 6.46% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -35.64% and Operating profit at -201.09% over the last 5 years

The company has declared Negative results for the last 13 consecutive quarters

NET PROFIT(HY) At CNY -29.85 MM has Grown at -399.07%
NET SALES(Q) At CNY 49.13 MM has Fallen at -37.14%
ROCE(HY) Lowest at -22.58%

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 29.39%, its profits have fallen by -97.6%

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 Dongzhu Ecological Environment Protection Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Dongzhu Ecological Environment Protection Co., Ltd.

-100.0%

1.06

71.45%

China Shanghai Composite

20.18%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-38.69%

EBIT Growth (5y)

-215.96%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

6.59

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

0.14

Tax Ratio

9.52%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.46%

ROE (avg)

5.36%

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

0.89

EV to EBIT

-1.40

EV to EBITDA

-1.42

EV to Capital Employed

0.90

EV to Sales

6.86

PEG Ratio

Dividend Yield

ROCE (Latest)

-64.60%

ROE (Latest)

-78.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

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

2What is working for the Company

PRE-TAX PROFIT(Q)

At CNY -14.21 MM has Grown at 94.76%

NET PROFIT(Q)

At CNY -14.07 MM has Grown at 94.79%

-36What is not working for the Company

NET PROFIT(HY)

At CNY -1,063.12 MM has Grown at -65.18%

INTEREST(HY)

At CNY 39.14 MM has Grown at 226.32%

NET SALES(Q)

At CNY 34.75 MM has Fallen at -50.85%

ROCE(HY)

Lowest at -53.6%

INVENTORY TURNOVER RATIO(HY)

Lowest at 28.22 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.05 times

RAW MATERIAL COST(Y)

Grown by 7.93% (YoY

CASH AND EQV(HY)

Lowest at CNY 270.96 MM

DEBT-EQUITY RATIO (HY)

Highest at 14.83 %

Here's what is working for Dongzhu Ecological Environment Protection Co., Ltd.

Pre-Tax Profit

At CNY -14.21 MM has Grown at 94.76%

over average net sales of the previous four periods of CNY -271.06 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -14.07 MM has Grown at 94.79%

over average net sales of the previous four periods of CNY -269.82 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Here's what is not working for Dongzhu Ecological Environment Protection Co., Ltd.

Interest

At CNY 39.14 MM has Grown at 226.32%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 34.75 MM has Fallen at -50.85%

over average net sales of the previous four periods of CNY 70.71 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 28.22 times and Fallen

In each half year 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 0.05 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Cash and Eqv

Lowest at CNY 270.96 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 14.83 %

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

Raw Material Cost

Grown by 7.93% (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