Shenzhen ZhaoWei Machinery & Electronic Co., Ltd. () 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

Shenzhen ZhaoWei Machinery & Electronic Co., Ltd.

Why is Shenzhen ZhaoWei Machinery & Electronic Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.31% and Operating profit at -9.88% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 125.34 MM
INTEREST(9M) At CNY 2.5 MM has Grown at 9.11%
DEBT-EQUITY RATIO (HY) Highest at -18.76 %

With ROE of 7.44%, it has a expensive valuation with a 9.87 Price to Book Value

Over the past year, while the stock has generated a return of -11.68%, its profits have risen by 21.6%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 24.44% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -11.68% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen ZhaoWei Machinery & Electronic Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Shenzhen ZhaoWei Machinery & Electronic Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen ZhaoWei Machinery & Electronic Co., Ltd.

-22.21%

2.18

45.47%

China Shanghai Composite

24.18%

1.89

12.91%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.31%

EBIT Growth (5y)

-9.88%

EBIT to Interest (avg)

79.04

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.41

Tax Ratio

7.62%

Dividend Payout Ratio

30.25%

Pledged Shares

Institutional Holding

ROCE (avg)

7.27%

ROE (avg)

6.35%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

133

Industry P/E

Price to Book Value

9.87

EV to EBIT

161.02

EV to EBITDA

108.47

EV to Capital Employed

19.23

EV to Sales

18.64

PEG Ratio

Dividend Yield

ROCE (Latest)

11.94%

ROE (Latest)

7.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

10What is working for the Company

ROCE(HY)

Highest at 7.53%

RAW MATERIAL COST(Y)

Fallen by -2.06% (YoY

NET SALES(Q)

Highest at CNY 468.62 MM

NET PROFIT(Q)

Highest at CNY 67.96 MM

EPS(Q)

Highest at CNY 0.28

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 125.34 MM

INTEREST(9M)

At CNY 2.5 MM has Grown at 9.11%

DEBT-EQUITY RATIO (HY)

Highest at -18.76 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.91 times

OPERATING PROFIT MARGIN(Q)

Lowest at 13.69 %

Here's what is working for Shenzhen ZhaoWei Machinery & Electronic Co., Ltd.

Net Sales

Highest at CNY 468.62 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 67.96 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.28

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -2.06% (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 Shenzhen ZhaoWei Machinery & Electronic Co., Ltd.

Interest

At CNY 2.5 MM has Grown at 9.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 125.34 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit Margin

Lowest at 13.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -18.76 %

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

Debtors Turnover Ratio

Lowest at 2.91 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio