Wuxi Zhenhua Auto Parts Co., Ltd.

  • Market Cap: Mid Cap
  • Industry: Auto Components & Equipments
  • ISIN: CNE1000051L0
CNY
24.75
0.6 (2.48%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Wuxi Zhenhua Auto Parts Co., Ltd.

Why is Wuxi Zhenhua Auto Parts Co., Ltd. ?

1
  • DEBT-EQUITY RATIO (HY) Highest at 28.97 %
  • INTEREST COVERAGE RATIO(Q) Lowest at 1,584.03
  • INTEREST(Q) Highest at CNY 9.57 MM
2
With ROE of 16.41%, it has a attractive valuation with a 3.52 Price to Book Value
  • Over the past year, while the stock has generated a return of 0.61%, its profits have risen by 22% ; the PEG ratio of the company is 1
3
Underperformed the market in the last 1 year
  • The stock has generated a return of 0.61% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Wuxi Zhenhua Auto Parts Co., Ltd. should be less than 10%
  2. Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Wuxi Zhenhua Auto Parts Co., Ltd. for you?

High Risk, Medium Return

Absolute
Risk Adjusted
Volatility
Wuxi Zhenhua Auto Parts Co., Ltd.
7.31%
0.44
51.93%
China Shanghai Composite
16.67%
1.58
14.20%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
18.38%
EBIT Growth (5y)
91.18%
EBIT to Interest (avg)
11.55
Debt to EBITDA (avg)
0.86
Net Debt to Equity (avg)
0.28
Sales to Capital Employed (avg)
0.74
Tax Ratio
16.81%
Dividend Payout Ratio
38.46%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.65%
ROE (avg)
9.81%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
3.52
EV to EBIT
19.17
EV to EBITDA
12.14
EV to Capital Employed
2.89
EV to Sales
3.70
PEG Ratio
0.98
Dividend Yield
NA
ROCE (Latest)
15.09%
ROE (Latest)
16.41%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bullish
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CNY 584.71 MM

ROCE(HY)

Highest at 18.12%

RAW MATERIAL COST(Y)

Fallen by -16.37% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.26 times

-14What is not working for the Company
DEBT-EQUITY RATIO (HY)

Highest at 28.97 %

INTEREST COVERAGE RATIO(Q)

Lowest at 1,584.03

INTEREST(Q)

Highest at CNY 9.57 MM

OPERATING PROFIT(Q)

Lowest at CNY 151.53 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 21.38 %

Here's what is working for Wuxi Zhenhua Auto Parts Co., Ltd.

Operating Cash Flow
Highest at CNY 584.71 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)

Inventory Turnover Ratio
Highest at 6.26 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost
Fallen by -16.37% (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 Wuxi Zhenhua Auto Parts Co., Ltd.

Interest
At CNY 9.57 MM has Grown at 36.09%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio
Lowest at 1,584.03
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 28.97 % 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
Highest at CNY 9.57 MM
in the last five periods and Increased by 36.09% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit
Lowest at CNY 151.53 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin
Lowest at 21.38 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales