Guizhou Zhenhua E-chem Inc.

  • Market Cap: Mid Cap
  • Industry: Miscellaneous
  • ISIN: CNE1000050B3
CNY
14.00
0.32 (2.34%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Guizhou Zhenhua E-chem Inc.

Why is Guizhou Zhenhua E-chem Inc. ?

1
High Debt Company with a Debt to Equity ratio (avg) at times
  • Poor long term growth as Net Sales has grown by an annual rate of -20.02% and Operating profit at -215.55% over the last 5 years
  • High Debt Company with a Debt to Equity ratio (avg) at times
  • The company has been able to generate a Return on Equity (avg) of 11.20% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -20.02% and Operating profit at -215.55% over the last 5 years
3
The company has declared Negative results for the last 9 consecutive quarters
  • NET SALES(Q) At CNY 353.93 MM has Fallen at -16.8%
  • ROCE(HY) Lowest at -12.17%
  • OPERATING PROFIT MARGIN(Q) Lowest at -35.86 %
4
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 11.21%, its profits have fallen by -739.8%
5
Underperformed the market in the last 1 year
  • The stock has generated a return of 11.21% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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 Miscellaneous)

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

Is Guizhou Zhenhua E-chem Inc. for you?

High Risk, Medium Return

Absolute
Risk Adjusted
Volatility
Guizhou Zhenhua E-chem Inc.
11.29%
0.65
49.21%
China Shanghai Composite
17.07%
1.58
14.20%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
-20.02%
EBIT Growth (5y)
-215.55%
EBIT to Interest (avg)
4.20
Debt to EBITDA (avg)
6.44
Net Debt to Equity (avg)
0.11
Sales to Capital Employed (avg)
0.61
Tax Ratio
15.88%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.16%
ROE (avg)
11.20%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.77
EV to EBIT
-13.23
EV to EBITDA
-22.19
EV to Capital Employed
1.68
EV to Sales
4.74
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-12.71%
ROE (Latest)
-12.90%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company
NET PROFIT(HY)

Higher at CNY -235.18 MM

-10What is not working for the Company
NET SALES(Q)

At CNY 353.93 MM has Fallen at -16.8%

ROCE(HY)

Lowest at -12.17%

OPERATING PROFIT MARGIN(Q)

Lowest at -35.86 %

Here's what is working for Guizhou Zhenhua E-chem Inc.

Net Profit
Higher at CNY -235.18 MM
than preceding 12 month period ended Sep 2025
MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Here's what is not working for Guizhou Zhenhua E-chem Inc.

Net Sales
At CNY 353.93 MM has Fallen at -16.8%
over average net sales of the previous four periods of CNY 425.41 MM
MOJO Watch
Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Profit Margin
Lowest at -35.86 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales