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.

55.41%

0.66

48.13%

China Shanghai Composite

15.17%

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)

0.79

Tax Ratio

22.49%

Dividend Payout Ratio

30.68%

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

2.10

EV to EBIT

23.51

EV to EBITDA

11.98

EV to Capital Employed

1.55

EV to Sales

2.00

PEG Ratio

Dividend Yield

1.09%

ROCE (Latest)

6.57%

ROE (Latest)

4.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -10.55% (YoY

-32What is not working for the Company

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%

DEBT-EQUITY RATIO (HY)

Highest at 156.36 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.3 times

OPERATING PROFIT(Q)

Lowest at CNY 101.98 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.95 %

PRE-TAX PROFIT(Q)

Lowest at CNY 13.66 MM

NET PROFIT(Q)

Lowest at CNY 9.65 MM

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

Raw Material Cost

Fallen by -10.55% (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 123.48 MM has Grown at 85.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 13.66 MM has Fallen at -72.22%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 9.65 MM has Fallen at -73.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 193.12 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 101.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 13.66 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 9.65 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 156.36 %

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

Inventory Turnover Ratio

Lowest at 2.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio