Shandong Zhangqiu Blower Co., Ltd. (002598) 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

Shandong Zhangqiu Blower Co., Ltd.

Why is Shandong Zhangqiu Blower Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.16% and Operating profit at -16.36% over the last 5 years

Negative results in Sep 25

ROCE(HY) Lowest at 2.43%
NET SALES(Q) At CNY 490.18 MM has Fallen at -16.34%
INTEREST(Q) At CNY 3.96 MM has Grown at 17.92%

With ROE of 3.95%, it has a expensive valuation with a 2.77 Price to Book Value

Over the past year, while the stock has generated a return of -20.78%, its profits have fallen by -56%

Below par performance in long term as well as near term

Along with generating -20.78% 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 Industrial Manufacturing)

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

Is Shandong Zhangqiu Blower Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shandong Zhangqiu Blower Co., Ltd.

-14.77%

0.32

44.21%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.16%

EBIT Growth (5y)

-16.36%

EBIT to Interest (avg)

8.64

Debt to EBITDA (avg)

1.30

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

1.06

Tax Ratio

4.75%

Dividend Payout Ratio

43.63%

Pledged Shares

Institutional Holding

ROCE (avg)

8.19%

ROE (avg)

9.33%

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

2.77

EV to EBIT

73.85

EV to EBITDA

32.75

EV to Capital Employed

2.28

EV to Sales

1.96

PEG Ratio

Dividend Yield

0.86%

ROCE (Latest)

3.09%

ROE (Latest)

3.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 154.66 MM

CASH AND EQV(HY)

Highest at CNY 783.99 MM

-20What is not working for the Company

ROCE(HY)

Lowest at 2.43%

NET SALES(Q)

At CNY 490.18 MM has Fallen at -16.34%

INTEREST(Q)

At CNY 3.96 MM has Grown at 17.92%

PRE-TAX PROFIT(Q)

At CNY 31.31 MM has Fallen at -47.83%

RAW MATERIAL COST(Y)

Grown by 11.08% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.56 times

NET PROFIT(Q)

Fallen at -35.6%

Here's what is working for Shandong Zhangqiu Blower Co., Ltd.

Operating Cash Flow

Highest at CNY 154.66 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 783.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Shandong Zhangqiu Blower Co., Ltd.

Net Sales

At CNY 490.18 MM has Fallen at -16.34%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 3.96 MM has Grown at 17.92%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 31.31 MM has Fallen at -47.83%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -35.6%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 1.56 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 11.08% (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