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

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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 Sales of 6.3%, the company declared Very Positive results in Mar 25

RAW MATERIAL COST(Y) Fallen by 1.99% (YoY)

Market Beating Performance

The stock has generated a return of 258.97% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.77%

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.

255.82%

2.85

79.05%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.79%

EBIT Growth (5y)

-63.06%

EBIT to Interest (avg)

27.54

Debt to EBITDA (avg)

0.42

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.66

Tax Ratio

4.90%

Dividend Payout Ratio

176.44%

Pledged Shares

Institutional Holding

ROCE (avg)

4.99%

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

397

Industry P/E

Price to Book Value

11.19

EV to EBIT

10633.34

EV to EBITDA

171.08

EV to Capital Employed

10.44

EV to Sales

14.70

PEG Ratio

Dividend Yield

0.42%

ROCE (Latest)

0.10%

ROE (Latest)

2.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by 1.99% (YoY

-18What is not working for the Company

INTEREST(HY)

At CNY 2.5 MM has Grown at 32.77%

OPERATING CASH FLOW(Y)

Lowest at CNY 31.71 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.34%

NET SALES(Q)

Lowest at CNY 140.16 MM

OPERATING PROFIT(Q)

Lowest at CNY -5.34 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.81 %

PRE-TAX PROFIT(Q)

Lowest at CNY 2.11 MM

NET PROFIT(Q)

Lowest at CNY 2.12 MM

EPS(Q)

Lowest at CNY 0.02

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

Raw Material Cost

Fallen by 1.99% (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 2.5 MM has Grown at 32.77%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 31.71 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 140.16 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -14.51%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -5.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.81 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 2.11 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 2.12 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 1.34%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 4.14 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income