Guangdong Zhengye Technology Co., Ltd. (300410) 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

Guangdong Zhengye Technology Co., Ltd.

Why is Guangdong Zhengye Technology Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0.61%

Poor long term growth as Net Sales has grown by an annual rate of -8.51% and Operating profit at 9.96% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a growth in Net Sales of 31.2%, the company declared Very Positive results in Mar 25

OPERATING CASH FLOW(Y) Highest at CNY 77.93 MM
NET SALES(HY) At CNY 358.7 MM has Grown at 25.36%
RAW MATERIAL COST(Y) Fallen by -34.21% (YoY)

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 39.16%, its profits have risen by 44.4%

Market Beating Performance

The stock has generated a return of 39.16% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong Zhengye Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

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

Is Guangdong Zhengye Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Zhengye Technology Co., Ltd.

-100.0%

1.46

61.34%

China Shanghai Composite

15.19%

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)

-8.51%

EBIT Growth (5y)

9.96%

EBIT to Interest (avg)

-4.93

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.48

Sales to Capital Employed (avg)

0.77

Tax Ratio

15.65%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.61%

ROE (avg)

0.80%

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

16.24

EV to EBIT

-32.42

EV to EBITDA

-44.32

EV to Capital Employed

7.33

EV to Sales

5.65

PEG Ratio

Dividend Yield

ROCE (Latest)

-22.60%

ROE (Latest)

-64.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 77.93 MM

NET SALES(HY)

At CNY 358.7 MM has Grown at 25.36%

RAW MATERIAL COST(Y)

Fallen by -34.21% (YoY

OPERATING PROFIT(Q)

Highest at CNY 2.94 MM

OPERATING PROFIT MARGIN(Q)

Highest at 1.82 %

PRE-TAX PROFIT(Q)

Highest at CNY 10.5 MM

NET PROFIT(Q)

Highest at CNY 9.51 MM

EPS(Q)

Highest at CNY 0.03

-4What is not working for the Company

ROCE(HY)

Lowest at -61.86%

CASH AND EQV(HY)

Lowest at CNY 182.98 MM

NET SALES(Q)

At CNY 161.87 MM has Fallen at -8.09%

Here's what is working for Guangdong Zhengye Technology Co., Ltd.

Pre-Tax Profit

At CNY 10.5 MM has Grown at 118.62%

over average net sales of the previous four periods of CNY -56.43 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 9.51 MM has Grown at 117.02%

over average net sales of the previous four periods of CNY -55.87 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 77.93 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Operating Profit

Highest at CNY 2.94 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 1.82 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 10.5 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 9.51 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -34.21% (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 Guangdong Zhengye Technology Co., Ltd.

Net Sales

At CNY 161.87 MM has Fallen at -8.09%

over average net sales of the previous four periods of CNY 176.12 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 182.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents