Jiangxi Zhengbang Technology Co., Ltd. (002157) 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

Jiangxi Zhengbang Technology Co., Ltd.

Why is Jiangxi Zhengbang Technology Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 4.95%

Poor long term growth as Net Sales has grown by an annual rate of -15.93% and Operating profit at -43.58% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Negative results in Mar 25

NET PROFIT(HY) At CNY 86.34 MM has Grown at -99.24%
INTEREST(Q) At CNY 51.8 MM has Grown at 43.37%

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 -8.96%, its profits have fallen by -94.8%

Below par performance in long term as well as near term

Along with generating -8.96% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Other Agricultural Products)

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

Is Jiangxi Zhengbang Technology Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangxi Zhengbang Technology Co., Ltd.

-11.64%

-0.31

23.60%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-15.93%

EBIT Growth (5y)

-43.58%

EBIT to Interest (avg)

-3.79

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.68

Tax Ratio

1.84%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.95%

ROE (avg)

22.25%

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

1.36

EV to EBIT

52.60

EV to EBITDA

10.09

EV to Capital Employed

1.47

EV to Sales

1.07

PEG Ratio

Dividend Yield

ROCE (Latest)

2.79%

ROE (Latest)

4.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 396.84 MM

NET SALES(Q)

At CNY 2,993.8 MM has Grown at 35.47%

PRE-TAX PROFIT(Q)

At CNY 105.94 MM has Grown at 115.97%

NET PROFIT(Q)

At CNY 170.61 MM has Grown at 215.36%

RAW MATERIAL COST(Y)

Fallen by -150.08% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.34%

DEBTORS TURNOVER RATIO(HY)

Highest at 18.93%

-11What is not working for the Company

NET PROFIT(HY)

At CNY 86.34 MM has Grown at -99.24%

INTEREST(Q)

At CNY 51.8 MM has Grown at 43.37%

Here's what is working for Jiangxi Zhengbang Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 396.84 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 2,993.8 MM has Grown at 35.47%

over average net sales of the previous four periods of CNY 2,209.99 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 105.94 MM has Grown at 115.97%

over average net sales of the previous four periods of CNY 49.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 170.61 MM has Grown at 215.36%

over average net sales of the previous four periods of CNY 54.1 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 5.34%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 18.93%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -150.08% (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 Jiangxi Zhengbang Technology Co., Ltd.

Interest

At CNY 51.8 MM has Grown at 43.37%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)