ScoreWhy is Hunan Zhenghong Science & Technology Development Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 0.53%
- The company has been able to generate a Return on Capital Employed (avg) of 0.53% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of -2.81% and Operating profit at -206.37% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 0.97% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -2.81% and Operating profit at -206.37% over the last 5 years
4
Negative results in Mar 26
- OPERATING CASH FLOW(Y) Lowest at CNY -33.03 MM
- NET SALES(9M) At CNY 789.01 MM has Grown at -10.7%
- DEBTORS TURNOVER RATIO(HY) Lowest at 10.46 times
5
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 -24.09%, its profits have risen by 31%
Real-Time Research ReportHow 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 Other Agricultural Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hunan Zhenghong Science & Technology Development Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hunan Zhenghong Science & Technology Development Co., Ltd.
-24.09%
0.35
37.71%
China Shanghai Composite
21.43%
1.55
13.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-2.81%
EBIT Growth (5y)
-206.37%
EBIT to Interest (avg)
-4.53
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.22
Sales to Capital Employed (avg)
1.92
Tax Ratio
0.05%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.53%
ROE (avg)
0.97%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
4.60
EV to EBIT
-63.43
EV to EBITDA
-259.60
EV to Capital Employed
3.65
EV to Sales
1.52
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-5.75%
ROE (Latest)
-6.84%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
NET PROFIT(HY)
Higher at CNY -17.95 MM
ROCE(HY)
Highest at -5.22%
RAW MATERIAL COST(Y)
Fallen by -7.4% (YoY
-24What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY -33.03 MM
NET SALES(9M)
At CNY 789.01 MM has Grown at -10.7%
DEBTORS TURNOVER RATIO(HY)
Lowest at 10.46 times
INTEREST(Q)
At CNY 1.2 MM has Grown at inf%
CASH AND EQV(HY)
Lowest at CNY 118.9 MM
DEBT-EQUITY RATIO
(HY)
Highest at 41.01 %
OPERATING PROFIT(Q)
Lowest at CNY -15.97 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -5.9 %
PRE-TAX PROFIT(Q)
Lowest at CNY -17.35 MM
NET PROFIT(Q)
Lowest at CNY -13.23 MM
EPS(Q)
Lowest at CNY -0.04
Here's what is working for Hunan Zhenghong Science & Technology Development Co., Ltd.
Raw Material Cost
Fallen by -7.4% (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 Hunan Zhenghong Science & Technology Development Co., Ltd.
Pre-Tax Profit
At CNY -17.35 MM has Fallen at -403.94%
over average net sales of the previous four periods of CNY -3.44 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -13.23 MM has Fallen at -286.02%
over average net sales of the previous four periods of CNY -3.43 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Operating Cash Flow
Lowest at CNY -33.03 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)
Interest
At CNY 1.2 MM has Grown at inf%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debtors Turnover Ratio
Lowest at 10.46 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Net Sales
At CNY 789.01 MM has Grown at -10.7%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY -15.97 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at -5.9 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY -17.35 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY -13.23 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY -0.04
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Cash and Eqv
Lowest at CNY 118.9 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 41.01 %
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
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