Jiangsu Zongyi Co., Ltd. (600770) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Jiangsu Zongyi Co., Ltd.

Why is Jiangsu Zongyi Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.07%

The company has been able to generate a Return on Capital Employed (avg) of 0.07% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -0.96% and Operating profit at 7.01% over the last 5 years

The company has declared Negative results for the last 9 consecutive quarters

NET PROFIT(HY) At CNY -35.1 MM has Grown at -94.37%
OPERATING CASH FLOW(Y) Lowest at CNY 47.04 MM
INTEREST(HY) At CNY 6.96 MM has Grown at 17.95%

With ROE of -1.04%, it has a fair valuation with a 2.14 Price to Book Value

Over the past year, while the stock has generated a return of 0.80%, its profits have risen by 48.4%

Underperformed the market in the last 1 year

The stock has generated a return of 0.80% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangsu Zongyi Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Jiangsu Zongyi Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangsu Zongyi Co., Ltd.

2.63%

2.12

45.85%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.96%

EBIT Growth (5y)

7.01%

EBIT to Interest (avg)

-2.92

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

0.09

Tax Ratio

6.51%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.07%

ROE (avg)

0.84%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.14

EV to EBIT

-99.60

EV to EBITDA

103.89

EV to Capital Employed

2.96

EV to Sales

14.41

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.97%

ROE (Latest)

-1.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

15What is working for the Company

ROCE(HY)

Highest at 2.04%

RAW MATERIAL COST(Y)

Fallen by -510.8% (YoY

NET SALES(Q)

Highest at CNY 100.09 MM

PRE-TAX PROFIT(Q)

At CNY -8.94 MM has Grown at 55.68%

-23What is not working for the Company

NET PROFIT(HY)

At CNY -35.1 MM has Grown at -94.37%

OPERATING CASH FLOW(Y)

Lowest at CNY 47.04 MM

INTEREST(HY)

At CNY 6.96 MM has Grown at 17.95%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.07%

OPERATING PROFIT(Q)

Lowest at CNY -21.16 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -21.14 %

Here's what is working for Jiangsu Zongyi Co., Ltd.

Net Sales

Highest at CNY 100.09 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 100.09 MM has Grown at 17.24%

over average net sales of the previous four periods of CNY 85.37 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -8.94 MM has Grown at 55.68%

over average net sales of the previous four periods of CNY -20.18 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -510.8% (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 Zongyi Co., Ltd.

Net Profit

At CNY -35.1 MM has Grown at -94.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 6.96 MM has Grown at 17.95%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 47.04 MM and Fallen

In each year 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 -21.16 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -21.14 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.07%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio