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

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 14.83% and Operating profit at -20.76% 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 14.83% and Operating profit at -20.76% over the last 5 years

With a growth in Net Profit of 61.06%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 3 consecutive negative quarters
RAW MATERIAL COST(Y) Fallen by -171.6% (YoY)
CASH AND EQV(HY) Highest at CNY 4,242.5 MM
NET SALES(Q) Highest at CNY 1,684.35 MM

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.

14.37%

1.01

53.58%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.83%

EBIT Growth (5y)

-20.76%

EBIT to Interest (avg)

8.49

Debt to EBITDA (avg)

12.21

Net Debt to Equity (avg)

1.01

Sales to Capital Employed (avg)

0.62

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

3.56

EV to EBIT

-941.49

EV to EBITDA

63.87

EV to Capital Employed

2.29

EV to Sales

2.67

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.24%

ROE (Latest)

-0.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

19What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -171.6% (YoY

CASH AND EQV(HY)

Highest at CNY 4,242.5 MM

NET SALES(Q)

Highest at CNY 1,684.35 MM

PRE-TAX PROFIT(Q)

Highest at CNY 80.22 MM

NET PROFIT(Q)

Highest at CNY 70.16 MM

EPS(Q)

Highest at CNY 0.17

-10What is not working for the Company

INTEREST(HY)

At CNY 29.33 MM has Grown at 16.07%

OPERATING CASH FLOW(Y)

Lowest at CNY 281.76 MM

DEBT-EQUITY RATIO (HY)

Highest at 110.99 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.74 times

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

Pre-Tax Profit

At CNY 80.22 MM has Grown at 1,754%

over average net sales of the previous four periods of CNY -4.85 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 70.16 MM has Grown at 1,128.09%

over average net sales of the previous four periods of CNY -6.82 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 1,684.35 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 80.22 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 70.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.17

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 4,242.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -171.6% (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 Xinzhi Group Co., Ltd.

Interest

At CNY 29.33 MM has Grown at 16.07%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 281.76 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 110.99 %

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

Debtors Turnover Ratio

Lowest at 2.74 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio