Hangzhou Zhengqiang Corp. Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hangzhou Zhengqiang Corp. Ltd.

Why is Hangzhou Zhengqiang Corp. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.16% and Operating profit at 13.98% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 90.84 MM
INTEREST(Q) At CNY 1.15 MM has Grown at 68.03%
DEBT-EQUITY RATIO (HY) Highest at -70.44 %

With ROE of 10.85%, it has a attractive valuation with a 1.07 Price to Book Value

Over the past year, while the stock has generated a return of 90.11%, its profits have risen by 9.7% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 2.4

Market Beating performance in long term as well as near term

Along with generating 90.11% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

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.

77.39%

2.44

62.30%

China Shanghai Composite

15.44%

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)

4.16%

EBIT Growth (5y)

13.98%

EBIT to Interest (avg)

45.11

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.70

Sales to Capital Employed (avg)

0.37

Tax Ratio

12.74%

Dividend Payout Ratio

116.66%

Pledged Shares

Institutional Holding

ROCE (avg)

30.91%

ROE (avg)

9.71%

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

1.07

EV to EBIT

4.54

EV to EBITDA

3.71

EV to Capital Employed

1.20

EV to Sales

0.91

PEG Ratio

1.02

Dividend Yield

2.37%

ROCE (Latest)

26.55%

ROE (Latest)

10.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

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

6What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 4.43%

PRE-TAX PROFIT(Q)

Highest at CNY 42.91 MM

NET PROFIT(Q)

Highest at CNY 37.62 MM

EPS(Q)

Highest at CNY 0.36

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 90.84 MM

INTEREST(Q)

At CNY 1.15 MM has Grown at 68.03%

DEBT-EQUITY RATIO (HY)

Highest at -70.44 %

OPERATING PROFIT(Q)

Lowest at CNY 21.32 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 20.62 %

Here's what is working for Hangzhou Zhengqiang Corp. Ltd.

Pre-Tax Profit

Highest at CNY 42.91 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 42.91 MM has Grown at 61.51%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 37.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 37.62 MM has Grown at 59.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.36

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 4.43%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Hangzhou Zhengqiang Corp. Ltd.

Operating Cash Flow

Lowest at CNY 90.84 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 1.15 MM has Grown at 68.03%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 21.32 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 20.62 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -70.44 %

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

Non Operating Income

Highest at CNY 0.53 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income