Xinzhi Group Co., Ltd. (002664) 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

Xinzhi Group Co., Ltd.

Why is Xinzhi Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.37%

The company has been able to generate a Return on Capital Employed (avg) of 2.37% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 15.08% and Operating profit at -156.47% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.24% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 15.08% and Operating profit at -156.47% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At CNY -60.98 MM has Grown at -150.28%
INTEREST(HY) At CNY 35.87 MM has Grown at 46.54%
ROCE(HY) Lowest at -0.59%

With ROE of -0.80%, it has a risky valuation with a 3.74 Price to Book Value

Over the past year, while the stock has generated a return of 59.55%, its profits have fallen by -111.5%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Xinzhi Group Co., Ltd. should be less than 10%
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 Xinzhi Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Xinzhi Group Co., Ltd.

63.2%

1.57

60.89%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.08%

EBIT Growth (5y)

-156.47%

EBIT to Interest (avg)

8.49

Debt to EBITDA (avg)

12.21

Net Debt to Equity (avg)

1.01

Sales to Capital Employed (avg)

0.61

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.37%

ROE (avg)

6.24%

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

3.74

EV to EBIT

-979.06

EV to EBITDA

66.42

EV to Capital Employed

2.38

EV to Sales

2.77

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.24%

ROE (Latest)

-0.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 3,909.24 MM

-22What is not working for the Company

NET PROFIT(HY)

At CNY -60.98 MM has Grown at -150.28%

INTEREST(HY)

At CNY 35.87 MM has Grown at 46.54%

ROCE(HY)

Lowest at -0.59%

RAW MATERIAL COST(Y)

Grown by 10.48% (YoY

NET SALES(Q)

Lowest at CNY 1,248.03 MM

Here's what is working for Xinzhi Group Co., Ltd.

Cash and Eqv

Highest at CNY 3,909.24 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Xinzhi Group Co., Ltd.

Net Profit

At CNY -60.98 MM has Grown at -150.28%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 35.87 MM has Grown at 46.54%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 1,248.03 MM has Fallen at -15.29%

over average net sales of the previous four periods of CNY 1,473.34 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 1,248.03 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Raw Material Cost

Grown by 10.48% (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

Non Operating Income

Highest at CNY 0.87 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income