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

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 17.99% and Operating profit at 13.25% 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(Q) At CNY 149.84 MM has Grown at 19.85%
INTEREST COVERAGE RATIO(Q) Lowest at 299.72
RAW MATERIAL COST(Y) Grown by 21.46% (YoY)

With ROE of 7.60%, it has a fair valuation with a 1.30 Price to Book Value

Over the past year, while the stock has generated a return of 16.53%, its profits have risen by 0.3% ; the PEG ratio of the company is 17.1
At the current price, the company has a high dividend yield of 1.7

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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd.

19.92%

0.65

40.89%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.99%

EBIT Growth (5y)

13.25%

EBIT to Interest (avg)

5.09

Debt to EBITDA (avg)

3.83

Net Debt to Equity (avg)

1.11

Sales to Capital Employed (avg)

1.88

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

1.30

EV to EBIT

22.28

EV to EBITDA

12.16

EV to Capital Employed

1.14

EV to Sales

0.62

PEG Ratio

17.09

Dividend Yield

1.66%

ROCE (Latest)

5.10%

ROE (Latest)

7.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

1What is working for the Company

NET SALES(Q)

Highest at CNY 17,392.16 MM

-7What is not working for the Company

INTEREST(Q)

At CNY 149.84 MM has Grown at 19.85%

INTEREST COVERAGE RATIO(Q)

Lowest at 299.72

RAW MATERIAL COST(Y)

Grown by 21.46% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 449.11 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.58 %

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

Net Sales

Highest at CNY 17,392.16 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd.

Interest

At CNY 149.84 MM has Grown at 19.85%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 299.72

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 449.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.58 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 21.46% (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