Henan Zhongyuan Expressway Co., Ltd. (600020) 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

Henan Zhongyuan Expressway Co., Ltd.

Why is Henan Zhongyuan Expressway Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.91%

Poor long term growth as Net Sales has grown by an annual rate of 7.23% and Operating profit at 2.94% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Sep 25

DEBTORS TURNOVER RATIO(HY) Lowest at 4.86 times

With ROE of 7.98%, it has a very expensive valuation with a 0.82 Price to Book Value

Over the past year, while the stock has generated a return of 6.15%, its profits have risen by 12% ; the PEG ratio of the company is 0.9
At the current price, the company has a high dividend yield of 4

Underperformed the market in the last 1 year

The stock has generated a return of 6.15% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Transport Services)

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

Is Henan Zhongyuan Expressway Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Henan Zhongyuan Expressway Co., Ltd.

-22.24%

0.79

20.63%

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)

2.96%

EBIT Growth (5y)

-11.81%

EBIT to Interest (avg)

1.56

Debt to EBITDA (avg)

11.59

Net Debt to Equity (avg)

3.14

Sales to Capital Employed (avg)

0.14

Tax Ratio

36.12%

Dividend Payout Ratio

42.92%

Pledged Shares

Institutional Holding

ROCE (avg)

3.91%

ROE (avg)

6.61%

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

0.74

EV to EBIT

42.12

EV to EBITDA

23.22

EV to Capital Employed

0.94

EV to Sales

6.86

PEG Ratio

Dividend Yield

4.31%

ROCE (Latest)

2.23%

ROE (Latest)

5.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,507.03 MM

RAW MATERIAL COST(Y)

Fallen by -0.64% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 422.2 MM

NET PROFIT(Q)

Highest at CNY 367.03 MM

EPS(Q)

Highest at CNY 0.16

-16What is not working for the Company

NET PROFIT(HY)

At CNY 25.1 MM has Grown at -93.92%

NET SALES(HY)

At CNY 3,149.01 MM has Grown at -11.61%

ROCE(HY)

Lowest at 5.41%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.91 times

Here's what is working for Henan Zhongyuan Expressway Co., Ltd.

Operating Cash Flow

Highest at CNY 2,507.03 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 422.2 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 367.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -0.64% (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 Henan Zhongyuan Expressway Co., Ltd.

Net Sales

At CNY 3,149.01 MM has Grown at -11.61%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 3.91 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