Wuchan Zhongda Geron Co., Ltd. (002722) 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

Wuchan Zhongda Geron Co., Ltd.

Why is Wuchan Zhongda Geron Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 7.33%

The company has been able to generate a Return on Capital Employed (avg) of 7.33% 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 -0.90% and Operating profit at -6.57% over the last 5 years

Positive results in Mar 26

NET SALES(HY) At CNY 1,217.21 MM has Grown at 19.31%
DEBT-EQUITY RATIO (HY) Lowest at -21.59 %
RAW MATERIAL COST(Y) Fallen by -10.09% (YoY)

With ROE of 5.45%, it has a attractive valuation with a 0.75 Price to Book Value

Over the past year, while the stock has generated a return of -17.02%, its profits have risen by 5.2% ; the PEG ratio of the company is 2.7
At the current price, the company has a high dividend yield of 2.1

Below par performance in long term as well as near term

Along with generating -17.02% 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 Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wuchan Zhongda Geron Co., Ltd. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is Wuchan Zhongda Geron Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wuchan Zhongda Geron Co., Ltd.

-22.48%

0.26

31.94%

China Shanghai Composite

20.18%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.90%

EBIT Growth (5y)

-6.57%

EBIT to Interest (avg)

6.41

Debt to EBITDA (avg)

0.82

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.81

Tax Ratio

20.79%

Dividend Payout Ratio

28.94%

Pledged Shares

Institutional Holding

ROCE (avg)

7.33%

ROE (avg)

4.97%

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

0.75

EV to EBIT

15.14

EV to EBITDA

11.39

EV to Capital Employed

0.68

EV to Sales

0.63

PEG Ratio

2.65

Dividend Yield

2.13%

ROCE (Latest)

4.48%

ROE (Latest)

5.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

6What is working for the Company

NET SALES(HY)

At CNY 1,217.21 MM has Grown at 19.31%

DEBT-EQUITY RATIO (HY)

Lowest at -21.59 %

RAW MATERIAL COST(Y)

Fallen by -10.09% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.99 times

-2What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 98.64 MM

Here's what is working for Wuchan Zhongda Geron Co., Ltd.

Net Sales

At CNY 1,217.21 MM has Grown at 19.31%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at -21.59 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.99 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -10.09% (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 Wuchan Zhongda Geron Co., Ltd.

Operating Cash Flow

Lowest at CNY 98.64 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)