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 -31.17%, 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.
-20.86%
0.26
38.96%
China Shanghai Composite
0.9%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-2.81%
EBIT Growth (5y)
-206.37%
EBIT to Interest (avg)
-6.59
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.22
Sales to Capital Employed (avg)
1.92
Tax Ratio
2.44%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
0.97%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
5.15
EV to EBIT
-70.52
EV to EBITDA
-288.60
EV to Capital Employed
4.05
EV to Sales
1.69
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-5.75%
ROE (Latest)
-6.84%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
NET PROFIT(9M)
Higher at CNY -26.1 MM
NET SALES(Q)
Highest at CNY 298.94 MM
-19What is not working for the Company
PRE-TAX PROFIT(Q)
At CNY -10.64 MM has Fallen at -92.42%
NET PROFIT(Q)
At CNY -8.15 MM has Fallen at -81.92%
OPERATING CASH FLOW(Y)
Lowest at CNY -75.16 MM
INTEREST(Q)
At CNY 1.42 MM has Grown at 18.01%
RAW MATERIAL COST(Y)
Grown by 49.51% (YoY
CASH AND EQV(HY)
Lowest at CNY 112.86 MM
DEBT-EQUITY RATIO
(HY)
Highest at 42.08 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 10.55 times
Here's what is working for Hunan Zhenghong Science & Technology Development Co., Ltd.
Net Sales
Highest at CNY 298.94 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Here's what is not working for Hunan Zhenghong Science & Technology Development Co., Ltd.
Pre-Tax Profit
At CNY -10.64 MM has Fallen at -92.42%
over average net sales of the previous four periods of CNY -5.53 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -8.15 MM has Fallen at -81.92%
over average net sales of the previous four periods of CNY -4.48 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest
At CNY 1.42 MM has Grown at 18.01%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Cash Flow
Lowest at CNY -75.16 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Cash and Eqv
Lowest at CNY 112.86 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 42.08 %
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
Debtors Turnover Ratio
Lowest at 10.55 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 49.51% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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