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. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -22.24% and Operating profit at -167.86% over the last 5 years
The company is Net-Debt Free

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At CNY 113.2 MM has Grown at 28.74%
PRE-TAX PROFIT(Q) At CNY -543.97 MM has Fallen at -190.92%
NET PROFIT(Q) At CNY -414.34 MM has Fallen at -203.31%

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 1.47%, its profits have fallen by -490%

Underperformed the market in the last 1 year

The stock has generated a return of 1.47% in the last 1 year, much lower than market (China Shanghai Composite) returns of 19.22%

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.

1.83%

-0.48

32.92%

China Shanghai Composite

16.78%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-22.24%

EBIT Growth (5y)

-167.86%

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)

0.80

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

NA (Loss Making)

Industry P/E

Price to Book Value

2.69

EV to EBIT

-28.90

EV to EBITDA

-368.28

EV to Capital Employed

2.65

EV to Sales

1.82

PEG Ratio

Dividend Yield

ROCE (Latest)

-9.17%

ROE (Latest)

-13.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 536.03 MM

NET SALES(HY)

At CNY 7,899.44 MM has Grown at 30.9%

DEBTORS TURNOVER RATIO(HY)

Highest at 32.52 times

INVENTORY TURNOVER RATIO(HY)

Highest at 6.83 times

-26What is not working for the Company

INTEREST(HY)

At CNY 113.2 MM has Grown at 28.74%

PRE-TAX PROFIT(Q)

At CNY -543.97 MM has Fallen at -190.92%

NET PROFIT(Q)

At CNY -414.34 MM has Fallen at -203.31%

ROCE(HY)

Lowest at -10.21%

RAW MATERIAL COST(Y)

Grown by 76.54% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 14.82 %

OPERATING PROFIT(Q)

Lowest at CNY -428.05 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -11.38 %

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

Operating Cash Flow

Highest at CNY 536.03 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 7,899.44 MM has Grown at 30.9%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 32.52 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

Inventory Turnover Ratio

Highest at 6.83 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Interest

At CNY 113.2 MM has Grown at 28.74%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -543.97 MM has Fallen at -190.92%

over average net sales of the previous four periods of CNY -186.98 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -414.34 MM has Fallen at -203.31%

over average net sales of the previous four periods of CNY -136.61 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -428.05 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -11.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 14.82 %

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

Raw Material Cost

Grown by 76.54% (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