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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Jiangxi Zhengbang Technology Co., Ltd.

Why is Jiangxi Zhengbang Technology 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 -19.11% and Operating profit at -135.14% 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 22.25% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -19.11% and Operating profit at -135.14% over the last 5 years

Negative results in Sep 25

ROCE(HY) Lowest at -0.65%
INTEREST(Q) At CNY 81.89 MM has Grown at 15.39%
RAW MATERIAL COST(Y) Grown by 34.2% (YoY)

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 9.19%, its profits have fallen by -94.8%

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangxi Zhengbang Technology Co., Ltd.

6.67%

-0.21

28.51%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-19.11%

EBIT Growth (5y)

-135.14%

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)

0.67

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

2.34

EV to EBIT

98.25

EV to EBITDA

18.84

EV to Capital Employed

2.74

EV to Sales

2.00

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

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,401.97 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 21.68 times

NET SALES(Q)

At CNY 3,820.12 MM has Grown at 22.39%

-32What is not working for the Company

ROCE(HY)

Lowest at -0.65%

INTEREST(Q)

At CNY 81.89 MM has Grown at 15.39%

RAW MATERIAL COST(Y)

Grown by 34.2% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -226.94 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -5.94 %

PRE-TAX PROFIT(Q)

Lowest at CNY -290.87 MM

NET PROFIT(Q)

Lowest at CNY -193.4 MM

EPS(Q)

Lowest at CNY -0.02

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

Operating Cash Flow

Highest at CNY 1,401.97 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)

Debtors Turnover Ratio

Highest at 21.68 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

At CNY 3,820.12 MM has Grown at 22.39%

over average net sales of the previous four periods of CNY 3,121.16 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Jiangxi Zhengbang Technology Co., Ltd.

Pre-Tax Profit

At CNY -290.87 MM has Fallen at -329.68%

over average net sales of the previous four periods of CNY 126.64 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -193.4 MM has Fallen at -241.8%

over average net sales of the previous four periods of CNY 136.39 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 81.89 MM has Grown at 15.39%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -226.94 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -5.94 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -290.87 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 -193.4 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 34.2% (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