Yunnan Chihong Zinc & Germanium Co., Ltd. (600497) 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

Yunnan Chihong Zinc & Germanium Co., Ltd.

Why is Yunnan Chihong Zinc & Germanium Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.86% and Operating profit at 1.80% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 3,188.68 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 44.5 times
INTEREST(Q) At CNY 14.94 MM has Grown at 27.99%

With ROE of 7.95%, it has a very attractive valuation with a 1.83 Price to Book Value

Over the past year, while the stock has generated a return of 84.78%, its profits have risen by 9.3% ; the PEG ratio of the company is 2.5
At the current price, the company has a high dividend yield of 2.2

Market Beating performance in long term as well as near term

Along with generating 84.78% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yunnan Chihong Zinc & Germanium Co., Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

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

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

Is Yunnan Chihong Zinc & Germanium Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Yunnan Chihong Zinc & Germanium Co., Ltd.

34.65%

1.96

40.34%

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)

4.86%

EBIT Growth (5y)

1.80%

EBIT to Interest (avg)

10.07

Debt to EBITDA (avg)

1.96

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

1.02

Tax Ratio

4.70%

Dividend Payout Ratio

51.12%

Pledged Shares

Institutional Holding

ROCE (avg)

6.56%

ROE (avg)

5.27%

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

1.83

EV to EBIT

20.15

EV to EBITDA

10.20

EV to Capital Employed

1.74

EV to Sales

1.67

PEG Ratio

2.47

Dividend Yield

2.21%

ROCE (Latest)

8.61%

ROE (Latest)

7.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

10What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 8.42 %

NET PROFIT(9M)

Higher at CNY 1,323.77 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 11.69 times

NET SALES(Q)

Highest at CNY 6,597.15 MM

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 3,188.68 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 44.5 times

INTEREST(Q)

At CNY 14.94 MM has Grown at 27.99%

RAW MATERIAL COST(Y)

Grown by 33.32% (YoY

Here's what is working for Yunnan Chihong Zinc & Germanium Co., Ltd.

Net Sales

At CNY 6,597.15 MM has Grown at 36.42%

over average net sales of the previous four periods of CNY 4,836 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at 8.42 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at CNY 6,597.15 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 11.69 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

Higher at CNY 1,323.77 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Here's what is not working for Yunnan Chihong Zinc & Germanium Co., Ltd.

Operating Cash Flow

Lowest at CNY 3,188.68 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 14.94 MM has Grown at 27.99%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 44.5 times and Fallen

In each half year 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 33.32% (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