Wuhan Sanzhen Industry Holding Co., Ltd. (600168) 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

Wuhan Sanzhen Industry Holding Co., Ltd.

Why is Wuhan Sanzhen Industry Holding Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 1.75%

Poor long term growth as Net Sales has grown by an annual rate of 21.81% and Operating profit at 4.67% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Mar 25

INTEREST(9M) At CNY 392.31 MM has Grown at 7.8%
DEBT-EQUITY RATIO (HY) Highest at 264.13 %
INTEREST COVERAGE RATIO(Q) Lowest at 99.53

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 Miscellaneous)

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

Is Wuhan Sanzhen Industry Holding Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Wuhan Sanzhen Industry Holding Co., Ltd.

-100.0%

0.70

31.71%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.81%

EBIT Growth (5y)

4.67%

EBIT to Interest (avg)

0.68

Debt to EBITDA (avg)

11.72

Net Debt to Equity (avg)

2.64

Sales to Capital Employed (avg)

0.18

Tax Ratio

32.53%

Dividend Payout Ratio

30.00%

Pledged Shares

Institutional Holding

ROCE (avg)

1.75%

ROE (avg)

3.45%

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

41.30

EV to EBITDA

14.31

EV to Capital Employed

0.92

EV to Sales

4.52

PEG Ratio

0.33

Dividend Yield

0.40%

ROCE (Latest)

2.23%

ROE (Latest)

1.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 520.58 MM

NET PROFIT(HY)

Higher at CNY 46.78 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 0.62%

NET SALES(Q)

At CNY 1,014.76 MM has Grown at 26.32%

-11What is not working for the Company

INTEREST(9M)

At CNY 392.31 MM has Grown at 7.8%

DEBT-EQUITY RATIO (HY)

Highest at 264.13 %

INTEREST COVERAGE RATIO(Q)

Lowest at 99.53

RAW MATERIAL COST(Y)

Grown by 11.08% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 126.46 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.46 %

PRE-TAX PROFIT(Q)

Fallen at -37.99%

NET PROFIT(Q)

Fallen at -36.64%

Here's what is working for Wuhan Sanzhen Industry Holding Co., Ltd.

Operating Cash Flow

Highest at CNY 520.58 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 1,014.76 MM has Grown at 26.32%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 0.62%

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 Wuhan Sanzhen Industry Holding Co., Ltd.

Interest Coverage Ratio

Lowest at 99.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 264.13 % and Grown

In each half year 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

Interest

At CNY 392.31 MM has Grown at 7.8%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 126.46 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -37.99%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -36.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 11.08% (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