Shanghai Zhenhua Heavy Industries Co., Ltd. (600320) 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

Shanghai Zhenhua Heavy Industries Co., Ltd.

Why is Shanghai Zhenhua Heavy Industries Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 1.92%

Poor long term growth as Net Sales has grown by an annual rate of 7.90% and Operating profit at -13.22% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Mar 25

INTEREST COVERAGE RATIO(Q) Lowest at 188.04
OPERATING PROFIT(Q) Lowest at CNY 336.17 MM
OPERATING PROFIT MARGIN(Q) Lowest at 3.96 %

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 Shanghai Zhenhua Heavy Industries Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Zhenhua Heavy Industries Co., Ltd.

15.12%

0.83

38.67%

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)

7.90%

EBIT Growth (5y)

-13.22%

EBIT to Interest (avg)

0.90

Debt to EBITDA (avg)

14.76

Net Debt to Equity (avg)

1.51

Sales to Capital Employed (avg)

0.69

Tax Ratio

14.24%

Dividend Payout Ratio

54.29%

Pledged Shares

Institutional Holding

ROCE (avg)

1.92%

ROE (avg)

4.91%

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

0.94

EV to EBIT

43.07

EV to EBITDA

15.20

EV to Capital Employed

0.98

EV to Sales

1.10

PEG Ratio

Dividend Yield

1.26%

ROCE (Latest)

2.27%

ROE (Latest)

5.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 7,259.34 MM

RAW MATERIAL COST(Y)

Fallen by -8.27% (YoY

CASH AND EQV(HY)

Highest at CNY 11,316.33 MM

DEBT-EQUITY RATIO (HY)

Lowest at 161.81 %

PRE-TAX PROFIT(Q)

Highest at CNY 336.6 MM

NET PROFIT(Q)

Highest at CNY 287.3 MM

EPS(Q)

Highest at CNY 0.05

-4What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 188.04

OPERATING PROFIT(Q)

Lowest at CNY 336.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.96 %

Here's what is working for Shanghai Zhenhua Heavy Industries Co., Ltd.

Operating Cash Flow

Highest at CNY 7,259.34 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)

Pre-Tax Profit

Highest at CNY 336.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 287.3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 287.3 MM has Grown at 53.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 11,316.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 161.81 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -8.27% (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 Shanghai Zhenhua Heavy Industries Co., Ltd.

Interest Coverage Ratio

Lowest at 188.04

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 336.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales