Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. (000060) 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 Zhongjin Lingnan Nonfemet Co., Ltd.

Why is Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 16.63% and Operating profit at 13.81% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 8.97% signifying low profitability per unit of shareholders funds
INTEREST COVERAGE RATIO(Q) Lowest at 324.58
OPERATING CASH FLOW(Y) Lowest at CNY 258.7 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 4.75%

Underperformed the market in the last 1 year

The stock has generated a return of 4.21% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%

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 Trading & Distributors)

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

Is Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd.

-100.0%

0.72

26.79%

China Shanghai Composite

15.19%

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)

16.63%

EBIT Growth (5y)

13.81%

EBIT to Interest (avg)

5.09

Debt to EBITDA (avg)

3.83

Net Debt to Equity (avg)

1.11

Sales to Capital Employed (avg)

1.91

Tax Ratio

17.23%

Dividend Payout Ratio

30.05%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

6.07%

ROE (avg)

8.97%

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

1.27

EV to EBIT

22.01

EV to EBITDA

12.01

EV to Capital Employed

1.12

EV to Sales

0.62

PEG Ratio

16.70

Dividend Yield

1.70%

ROCE (Latest)

5.10%

ROE (Latest)

7.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

6What is working for the Company

NET PROFIT(HY)

At CNY 517.57 MM has Grown at 86.21%

RAW MATERIAL COST(Y)

Fallen by -20.54% (YoY

EPS(Q)

Highest at CNY 0.07

-14What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 324.58

OPERATING CASH FLOW(Y)

Lowest at CNY 258.7 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.75%

INTEREST(Q)

At CNY 140.92 MM has Grown at 12.35%

OPERATING PROFIT(Q)

Lowest at CNY 457.4 MM

DEBT-EQUITY RATIO (HY)

Highest at 110.72 %

NET SALES(Q)

Fallen at -10.88%

OPERATING PROFIT MARGIN(Q)

Lowest at 2.86 %

Here's what is working for Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd.

Net Profit

At CNY 517.57 MM has Grown at 86.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.07

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -20.54% (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 Zhongjin Lingnan Nonfemet Co., Ltd.

Interest Coverage Ratio

Lowest at 324.58 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 140.92 MM has Grown at 12.35%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 457.4 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 4.75% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at CNY 258.7 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Fallen at -10.88%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at 2.86 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 110.72 %

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