Why is Hangzhou Zhengqiang Corp. Ltd. ?
1
With ROE of 10.85%, it has a very attractive valuation with a 4.16 Price to Book Value
- Over the past year, while the stock has generated a return of 20.65%, its profits have risen by 9.7% ; the PEG ratio of the company is 4
- At the current price, the company has a high dividend yield of 0.6
How much should you buy?
- Overall Portfolio exposure to Hangzhou Zhengqiang Corp. 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 Hangzhou Zhengqiang Corp. Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Hangzhou Zhengqiang Corp. Ltd.
20.65%
2.11
62.36%
China Shanghai Composite
16.01%
1.07
14.97%
Quality key factors
Factor
Value
Sales Growth (5y)
3.23%
EBIT Growth (5y)
9.12%
EBIT to Interest (avg)
45.11
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.70
Sales to Capital Employed (avg)
0.36
Tax Ratio
12.74%
Dividend Payout Ratio
116.66%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
30.91%
ROE (avg)
9.71%
Valuation Key Factors 
Factor
Value
P/E Ratio
38
Industry P/E
Price to Book Value
4.16
EV to EBIT
40.35
EV to EBITDA
33.01
EV to Capital Employed
10.71
EV to Sales
8.05
PEG Ratio
3.97
Dividend Yield
0.61%
ROCE (Latest)
26.55%
ROE (Latest)
10.85%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
7What is working for the Company
ROCE(HY)
Highest at 11.39%
NET PROFIT(9M)
Higher at CNY 92.34 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 4.54 times
NET SALES(Q)
At CNY 120.66 MM has Grown at 27.63%
-8What is not working for the Company
INTEREST(9M)
At CNY 4.27 MM has Grown at 24.62%
OPERATING CASH FLOW(Y)
Lowest at CNY 68.48 MM
DEBT-EQUITY RATIO
(HY)
Highest at -66.07 %
Here's what is working for Hangzhou Zhengqiang Corp. Ltd.
Net Profit
At CNY 92.34 MM has Grown at 39.75%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Net Sales
At CNY 120.66 MM has Grown at 27.63%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Inventory Turnover Ratio
Highest at 4.54 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Profit
Higher at CNY 92.34 MM
than preceding 12 month period ended Sep 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (CNY MM)
Here's what is not working for Hangzhou Zhengqiang Corp. Ltd.
Interest
At CNY 4.27 MM has Grown at 24.62%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Cash Flow
Lowest at CNY 68.48 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Highest at -66.07 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






