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 257.82%, the company declared Very Positive results in Sep 25

ROCE(HY) Highest at 3.93%
INTEREST COVERAGE RATIO(Q) Highest at 2,441.91
RAW MATERIAL COST(Y) Fallen by -26.93% (YoY)

Market Beating Performance

The stock has generated a return of 89.44% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

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.

55.12%

1.45

77.61%

China Shanghai Composite

21.43%

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)

16.23%

EBIT Growth (5y)

-5.17%

EBIT to Interest (avg)

27.54

Debt to EBITDA (avg)

0.42

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.69

Tax Ratio

4.90%

Dividend Payout Ratio

63.61%

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

115

Industry P/E

Price to Book Value

7.17

EV to EBIT

179.71

EV to EBITDA

102.02

EV to Capital Employed

6.14

EV to Sales

8.07

PEG Ratio

2.41

Dividend Yield

1.02%

ROCE (Latest)

3.42%

ROE (Latest)

6.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

27What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 17.87 MM has Grown at 746.87%

NET PROFIT(Q)

At CNY 16.57 MM has Grown at 680.22%

OPERATING CASH FLOW(Y)

Highest at CNY 246.49 MM

ROCE(HY)

Highest at 6.28%

NET SALES(Q)

At CNY 209.37 MM has Grown at 47.25%

RAW MATERIAL COST(Y)

Fallen by -40.31% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.68 times

-8What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 535.53

DEBT-EQUITY RATIO (HY)

Highest at 20.23 %

INTEREST(Q)

Highest at CNY 1.98 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.06 %

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

Pre-Tax Profit

At CNY 17.87 MM has Grown at 746.87%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 16.57 MM has Grown at 680.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 209.37 MM has Grown at 47.25%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 246.49 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 1.68 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 -40.31% (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 1.98 MM has Grown at 282.46%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 535.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 1.98 MM

in the last five periods and Increased by 282.46% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 5.06 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 20.23 %

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