Shanghai Zhezhong Group Co., Ltd. (002346) 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

Shanghai Zhezhong Group Co., Ltd.

Why is Shanghai Zhezhong Group Co., Ltd. ?

With a fall in Net Sales of -21.6%, the company declared Very Negative results in Sep 25

NET SALES(Q) At CNY 231.54 MM has Fallen at -21.33%
NET PROFIT(Q) At CNY 61.27 MM has Fallen at -63.89%
INTEREST COVERAGE RATIO(Q) Lowest at 56.65

With ROE of 9.87%, it has a attractive valuation with a 3.25 Price to Book Value

Over the past year, while the stock has generated a return of 31.93%, its profits have risen by 29.8% ; the PEG ratio of the company is 1.1
At the current price, the company has a high dividend yield of 2.6

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 Electronics & Appliances)

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

Is Shanghai Zhezhong Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Zhezhong Group Co., Ltd.

26.14%

3.02

40.97%

China Shanghai Composite

24.7%

1.93

12.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.77%

EBIT Growth (5y)

15.08%

EBIT to Interest (avg)

2.68

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.33

Tax Ratio

18.28%

Dividend Payout Ratio

282.81%

Pledged Shares

Institutional Holding

ROCE (avg)

3.53%

ROE (avg)

6.39%

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

3.25

EV to EBIT

58.56

EV to EBITDA

50.45

EV to Capital Employed

3.03

EV to Sales

9.71

PEG Ratio

1.10

Dividend Yield

2.61%

ROCE (Latest)

5.18%

ROE (Latest)

9.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

3What is working for the Company

ROCE(HY)

Highest at 20.57%

INVENTORY TURNOVER RATIO(HY)

Highest at 6.46 times

-37What is not working for the Company

NET SALES(Q)

At CNY 231.54 MM has Fallen at -21.33%

NET PROFIT(Q)

At CNY 61.27 MM has Fallen at -63.89%

INTEREST COVERAGE RATIO(Q)

Lowest at 56.65

PRE-TAX PROFIT(Q)

At CNY 80.14 MM has Fallen at -42.35%

RAW MATERIAL COST(Y)

Grown by 11.66% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.4 times

INTEREST(Q)

Highest at CNY 34.19 MM

OPERATING PROFIT(Q)

Lowest at CNY 19.37 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.37 %

Here's what is working for Shanghai Zhezhong Group Co., Ltd.

Inventory Turnover Ratio

Highest at 6.46 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 Shanghai Zhezhong Group Co., Ltd.

Net Sales

At CNY 231.54 MM has Fallen at -21.33%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Profit

At CNY 61.27 MM has Fallen at -63.89%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 34.19 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 56.65

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 80.14 MM has Fallen at -42.35%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

Highest at CNY 34.19 MM

in the last five periods and Increased by inf% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 19.37 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 1.4 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 11.66% (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