ScoreWhy is Shenzhen Zhongheng Huafa Co., Ltd. ?
1
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)
2
Poor long term growth as Net Sales has grown by an annual rate of 0.10% and Operating profit at 11.51% over the last 5 years
3
With a fall in Net Sales of -12.71%, the company declared Very Negative results in Mar 26
- The company has declared negative results for the last 2 consecutive quarters
- The company has declared negative results in Dec 25 after 5 consecutive negative quarters
- INTEREST(9M) At CNY 0 MM has Grown at inf%
- OPERATING CASH FLOW(Y) Lowest at CNY 56.07 MM
- NET SALES(Q) Lowest at CNY 152.71 MM
4
With ROE of 7.81%, it has a very expensive valuation with a 4.84 Price to Book Value
- Over the past year, while the stock has generated a return of -20.00%, its profits have fallen by -6.9%
5
Below par performance in long term as well as near term
- Along with generating -20.00% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow 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 IT - Hardware)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Shenzhen Zhongheng Huafa Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Shenzhen Zhongheng Huafa Co., Ltd.
3.62%
0.19
50.73%
China Shanghai Composite
3.23%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.10%
EBIT Growth (5y)
11.51%
EBIT to Interest (avg)
15.28
Debt to EBITDA (avg)
0.27
Net Debt to Equity (avg)
-0.17
Sales to Capital Employed (avg)
1.69
Tax Ratio
20.86%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.68%
ROE (avg)
4.25%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
62
Industry P/E
Price to Book Value
4.86
EV to EBIT
46.17
EV to EBITDA
39.21
EV to Capital Employed
6.27
EV to Sales
2.55
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
13.58%
ROE (Latest)
7.81%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 67.82 MM
CASH AND EQV(HY)
Highest at CNY 378.74 MM
-31What is not working for the Company
NET SALES(Q)
At CNY 158.27 MM has Fallen at -20.7%
RAW MATERIAL COST(Y)
Grown by 7.54% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 7.84 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.31 times
OPERATING PROFIT(Q)
Lowest at CNY 6.63 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 4.19 %
PRE-TAX PROFIT(Q)
Lowest at CNY 4.03 MM
NET PROFIT(Q)
Lowest at CNY 3.2 MM
EPS(Q)
Lowest at CNY 0.01
Here's what is working for Shenzhen Zhongheng Huafa Co., Ltd.
Operating Cash Flow
Highest at CNY 67.82 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Cash and Eqv
Highest at CNY 378.74 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Shenzhen Zhongheng Huafa Co., Ltd.
Net Sales
At CNY 158.27 MM has Fallen at -20.7%
over average net sales of the previous four periods of CNY 199.59 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Pre-Tax Profit
At CNY 4.03 MM has Fallen at -63.29%
over average net sales of the previous four periods of CNY 10.97 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 3.2 MM has Fallen at -63.1%
over average net sales of the previous four periods of CNY 8.68 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Operating Profit
Lowest at CNY 6.63 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 4.19 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY 4.03 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY 3.2 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY 0.01
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Inventory Turnover Ratio
Lowest at 7.84 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 3.31 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 7.54% (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
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