Xiamen Zhongchuang Environmental Technology Co., Ltd. (300056) 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

Xiamen Zhongchuang Environmental Technology Co., Ltd.

Why is Xiamen Zhongchuang Environmental Technology Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -26.92% and Operating profit at -211.95% over the last 5 years
The company is Net-Debt Free

The company has declared Negative results for the last 8 consecutive quarters

ROCE(HY) Lowest at -85.75%
DEBT-EQUITY RATIO (HY) Highest at 291.62 %
RAW MATERIAL COST(Y) Grown by 37.43% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -44.52%, its profits have risen by 18.2%

Below par performance in long term as well as near term

Along with generating -44.52% 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 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 Minerals & Mining)

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

Is Xiamen Zhongchuang Environmental Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Xiamen Zhongchuang Environmental Technology Co., Ltd.

-100.0%

0.02

52.84%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-26.92%

EBIT Growth (5y)

-211.95%

EBIT to Interest (avg)

-4.23

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.15

Sales to Capital Employed (avg)

0.99

Tax Ratio

12.92%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.62%

ROE (avg)

2.14%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

32.75

EV to EBIT

-17.89

EV to EBITDA

-22.21

EV to Capital Employed

9.19

EV to Sales

6.69

PEG Ratio

Dividend Yield

ROCE (Latest)

-51.39%

ROE (Latest)

-201.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 16.16 MM

NET PROFIT(HY)

Higher at CNY -73.67 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.09 times

-18What is not working for the Company

ROCE(HY)

Lowest at -85.75%

DEBT-EQUITY RATIO (HY)

Highest at 291.62 %

RAW MATERIAL COST(Y)

Grown by 37.43% (YoY

CASH AND EQV(HY)

Lowest at CNY 43.12 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.53 times

NET SALES(Q)

Lowest at CNY 65.97 MM

Here's what is working for Xiamen Zhongchuang Environmental Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 16.16 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 Profit

Higher at CNY -73.67 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 4.09 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 Xiamen Zhongchuang Environmental Technology Co., Ltd.

Net Sales

At CNY 65.97 MM has Fallen at -31.41%

over average net sales of the previous four periods of CNY 96.18 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 291.62 % 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

Net Sales

Lowest at CNY 65.97 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 43.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 1.53 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 37.43% (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