Shenzhen Zhongheng Huafa Co., Ltd. (000020) 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

Shenzhen Zhongheng Huafa Co., Ltd.

Why is Shenzhen Zhongheng Huafa Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.20%

The company has been able to generate a Return on Capital Employed (avg) of 4.20% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 4.83% and Operating profit at 14.63% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

NET SALES(HY) At CNY 420.28 MM has Grown at 22.77%
NET PROFIT(HY) Higher at CNY 28.42 MM
ROCE(HY) Highest at 9.54%

With ROE of 9.81%, it has a very expensive valuation with a 6.02 Price to Book Value

Over the past year, while the stock has generated a return of 7.38%, its profits have risen by 164.3% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Zhongheng Huafa Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

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

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

Is Shenzhen Zhongheng Huafa Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Zhongheng Huafa Co., Ltd.

9.28%

1.17

41.60%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.83%

EBIT Growth (5y)

14.63%

EBIT to Interest (avg)

7.09

Debt to EBITDA (avg)

0.60

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

1.71

Tax Ratio

9.21%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.20%

ROE (avg)

4.25%

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

6.02

EV to EBIT

74.56

EV to EBITDA

52.52

EV to Capital Employed

6.75

EV to Sales

2.87

PEG Ratio

0.37

Dividend Yield

ROCE (Latest)

9.05%

ROE (Latest)

9.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Bullish

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

17What is working for the Company

NET SALES(HY)

At CNY 420.28 MM has Grown at 22.77%

NET PROFIT(HY)

Higher at CNY 28.42 MM

ROCE(HY)

Highest at 9.54%

CASH AND EQV(HY)

Highest at CNY 351.15 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.81%

-4What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 16.12% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 2.85 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.35 %

NET PROFIT(Q)

At CNY 5.92 MM has Fallen at -35.5%

Here's what is working for Shenzhen Zhongheng Huafa Co., Ltd.

Net Sales

At CNY 420.28 MM has Grown at 22.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 351.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 4.81%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Shenzhen Zhongheng Huafa Co., Ltd.

Operating Profit

Lowest at CNY 2.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.35 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 5.92 MM has Fallen at -35.5%

over average net sales of the previous four periods of CNY 9.18 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 16.12% (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