Shanghai Zhenhua Heavy Industries Co., Ltd.

Market Cap: Large Cap
Industry: Industrial Manufacturing
ISIN: CNE000001683

CNY

4.62

-0.03 (-0.65%)

Mar 24

SHG

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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 8.31% and Operating profit at -9.83% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 166.71
OPERATING PROFIT(Q) Lowest at CNY 261.32 MM
OPERATING PROFIT MARGIN(Q) Lowest at 3.03 %

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.

-6.1%

1.24

40.53%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.31%

EBIT Growth (5y)

-9.83%

EBIT to Interest (avg)

0.90

Debt to EBITDA (avg)

14.76

Net Debt to Equity (avg)

1.51

Sales to Capital Employed (avg)

0.72

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

1.18

EV to EBIT

47.35

EV to EBITDA

16.71

EV to Capital Employed

1.07

EV to Sales

1.20

PEG Ratio

Dividend Yield

1.00%

ROCE (Latest)

2.27%

ROE (Latest)

5.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.35% (YoY

-4What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 166.71

OPERATING PROFIT(Q)

Lowest at CNY 261.32 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.03 %

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

Raw Material Cost

Fallen by 0.35% (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 166.71

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 261.32 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.03 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales