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

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 20.39% and Operating profit at 1.44% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY -80.98 MM
DEBT-EQUITY RATIO (HY) Highest at 273.28 %
INTEREST COVERAGE RATIO(Q) Lowest at 45.08

With ROE of 1.45%, it has a fair valuation with a 0.62 Price to Book Value

Over the past year, while the stock has generated a return of 16.56%, its profits have risen by 177.6% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0.5

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.

-7.86%

0.74

28.01%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.47%

EBIT Growth (5y)

-5.20%

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

30.05%

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

0.59

EV to EBIT

56.62

EV to EBITDA

18.88

EV to Capital Employed

0.86

EV to Sales

4.51

PEG Ratio

0.97

Dividend Yield

0.43%

ROCE (Latest)

1.51%

ROE (Latest)

1.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

2What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 180.08 %

INVENTORY TURNOVER RATIO(HY)

Highest at 327.76 times

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -484 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 83.14

OPERATING PROFIT MARGIN(Q)

Lowest at 8.81 %

RAW MATERIAL COST(Y)

Grown by 7.38% (YoY

NET SALES(Q)

Lowest at CNY 892.3 MM

OPERATING PROFIT(Q)

Lowest at CNY 78.63 MM

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

Debt-Equity Ratio

Lowest at 180.08 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 327.76 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Wuhan Sanzhen Industry Holding Co., Ltd.

Interest Coverage Ratio

Lowest at 83.14

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 8.81 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Cash Flow

Lowest at CNY -484 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

Lowest at CNY 892.3 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -12.07%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 78.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Raw Material Cost

Grown by 7.38% (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