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 hold?

Overall Portfolio exposure to Wuhan Sanzhen Industry Holding Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

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

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Wuhan Sanzhen Industry Holding Co., Ltd.

9.86%

0.74

28.01%

China Shanghai Composite

15.17%

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)

20.39%

EBIT Growth (5y)

1.44%

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

0.62

EV to EBIT

39.40

EV to EBITDA

13.65

EV to Capital Employed

0.88

EV to Sales

4.31

PEG Ratio

0.28

Dividend Yield

0.48%

ROCE (Latest)

2.23%

ROE (Latest)

1.45%

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

OBV

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

4What is working for the Company

NET PROFIT(HY)

At CNY 51.78 MM has Grown at 119.62%

INVENTORY TURNOVER RATIO(HY)

Highest at 312.51 times

-9What is not working for the Company

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

RAW MATERIAL COST(Y)

Grown by 16.16% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 49.86 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.25 %

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

Net Profit

At CNY 51.78 MM has Grown at 119.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 312.51 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 45.08

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 273.28 % 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

Operating Cash Flow

Lowest at CNY -80.98 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 49.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.25 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 16.16% (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