Zhe Jiang Headman Machinery Co., Ltd. (688577) 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

Zhe Jiang Headman Machinery Co., Ltd.

Why is Zhe Jiang Headman Machinery Co., Ltd. ?

With a growth in Net Profit of 407.44%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 4 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 222.53 MM
ROCE(HY) Highest at 8.88%
OPERATING PROFIT(Q) Highest at CNY 44.79 MM

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Zhe Jiang Headman Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Zhe Jiang Headman Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhe Jiang Headman Machinery Co., Ltd.

-42.7%

0.51

64.47%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.23%

EBIT Growth (5y)

-5.17%

EBIT to Interest (avg)

20.51

Debt to EBITDA (avg)

0.89

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.69

Tax Ratio

6.71%

Dividend Payout Ratio

63.62%

Pledged Shares

Institutional Holding

ROCE (avg)

3.44%

ROE (avg)

5.65%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

106

Industry P/E

Price to Book Value

6.59

EV to EBIT

165.41

EV to EBITDA

93.90

EV to Capital Employed

5.65

EV to Sales

7.43

PEG Ratio

2.21

Dividend Yield

0.45%

ROCE (Latest)

3.42%

ROE (Latest)

6.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

37What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 222.53 MM

ROCE(HY)

Highest at 8.88%

OPERATING PROFIT(Q)

Highest at CNY 44.79 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.04 %

RAW MATERIAL COST(Y)

Fallen by -25.57% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.97 times

NET SALES(Q)

Highest at CNY 319.02 MM

PRE-TAX PROFIT(Q)

Highest at CNY 33.56 MM

NET PROFIT(Q)

Highest at CNY 30.15 MM

EPS(Q)

Highest at CNY 0.19

-7What is not working for the Company

INTEREST(HY)

At CNY 3.46 MM has Grown at 40.89%

DEBT-EQUITY RATIO (HY)

Highest at 25.26 %

Here's what is working for Zhe Jiang Headman Machinery Co., Ltd.

Pre-Tax Profit

At CNY 33.56 MM has Grown at 416.27%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 30.15 MM has Grown at 407.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 319.02 MM has Grown at 45.01%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 44.79 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 14.04 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Operating Cash Flow

Highest at CNY 222.53 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 319.02 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 33.56 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 30.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.19

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 1.97 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 -25.57% (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 Zhe Jiang Headman Machinery Co., Ltd.

Interest

At CNY 3.46 MM has Grown at 40.89%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 25.26 %

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

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