Jiangsu Zhenjiang New Energy Equipment Co., Ltd. (603507) 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

Jiangsu Zhenjiang New Energy Equipment Co., Ltd.

Why is Jiangsu Zhenjiang New Energy Equipment Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 12.75% and Operating profit at 12.62% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.94% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.75% and Operating profit at 12.62% over the last 5 years

INTEREST(HY) At CNY 123.48 MM has Grown at 85.83%
OPERATING CASH FLOW(Y) Lowest at CNY 193.12 MM
ROCE(HY) Lowest at 2.31%

With ROE of 4.26%, it has a expensive valuation with a 2.10 Price to Book Value

Over the past year, while the stock has generated a return of 27.00%, its profits have fallen by -38.6%
At the current price, the company has a high dividend yield of 1.1

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 Electronics & Appliances)

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

Is Jiangsu Zhenjiang New Energy Equipment Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Jiangsu Zhenjiang New Energy Equipment Co., Ltd.

54.54%

0.66

48.13%

China Shanghai Composite

20.36%

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)

12.75%

EBIT Growth (5y)

12.62%

EBIT to Interest (avg)

2.79

Debt to EBITDA (avg)

2.13

Net Debt to Equity (avg)

0.75

Sales to Capital Employed (avg)

0.75

Tax Ratio

22.49%

Dividend Payout Ratio

49.18%

Pledged Shares

Institutional Holding

ROCE (avg)

9.50%

ROE (avg)

6.94%

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

2.86

EV to EBIT

30.98

EV to EBITDA

17.97

EV to Capital Employed

1.82

EV to Sales

2.56

PEG Ratio

Dividend Yield

0.80%

ROCE (Latest)

5.87%

ROE (Latest)

3.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

13What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.89% (YoY

NET SALES(Q)

Highest at CNY 1,488.63 MM

NET PROFIT(Q)

Highest at CNY 37.91 MM

EPS(Q)

Highest at CNY 0.53

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 84.21 MM

DEBT-EQUITY RATIO (HY)

Highest at 161.5 %

INTEREST COVERAGE RATIO(Q)

Lowest at 176.13

INTEREST(Q)

Highest at CNY 84.37 MM

OPERATING PROFIT(Q)

Lowest at CNY 148.61 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.98 %

Here's what is working for Jiangsu Zhenjiang New Energy Equipment Co., Ltd.

Net Sales

At CNY 1,488.63 MM has Grown at 58.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 1,488.63 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 37.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 37.91 MM has Grown at 80.94%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.53

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -7.89% (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 Jiangsu Zhenjiang New Energy Equipment Co., Ltd.

Interest

At CNY 84.37 MM has Grown at 71.09%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 176.13

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 161.5 % and Grown

In each half year 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

Operating Cash Flow

Lowest at CNY 84.21 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 84.37 MM

in the last five periods and Increased by 71.09% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 148.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales