Zhe Kuang Heavy Industry Co., Ltd. (300837) 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 Kuang Heavy Industry Co., Ltd.

Why is Zhe Kuang Heavy Industry Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.86% and Operating profit at -15.26% over the last 5 years

The company has declared positive results for the last 2 consecutive quarters

NET PROFIT(HY) At CNY 36.38 MM has Grown at 541.97%
OPERATING CASH FLOW(Y) Highest at CNY 37.64 MM
NET SALES(HY) At CNY 360.46 MM has Grown at 18.94%

With ROE of 5.41%, it has a expensive valuation with a 0.63 Price to Book Value

Over the past year, while the stock has generated a return of 22.40%, its profits have risen by 106% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 3.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhe Kuang Heavy Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Zhe Kuang Heavy Industry Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zhe Kuang Heavy Industry Co., Ltd.

14.63%

0.41

61.03%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.86%

EBIT Growth (5y)

-15.26%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.33

Tax Ratio

24.93%

Dividend Payout Ratio

39.32%

Pledged Shares

Institutional Holding

ROCE (avg)

17.81%

ROE (avg)

10.77%

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

0.63

EV to EBIT

13.32

EV to EBITDA

8.47

EV to Capital Employed

0.62

EV to Sales

1.30

PEG Ratio

0.11

Dividend Yield

3.35%

ROCE (Latest)

4.68%

ROE (Latest)

5.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

18What is working for the Company

NET PROFIT(HY)

At CNY 36.38 MM has Grown at 541.97%

OPERATING CASH FLOW(Y)

Highest at CNY 37.64 MM

NET SALES(HY)

At CNY 360.46 MM has Grown at 18.94%

RAW MATERIAL COST(Y)

Fallen by -22.61% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 0.83 times

-8What is not working for the Company

NET SALES(Q)

At CNY 149.32 MM has Fallen at -12.2%

DEBT-EQUITY RATIO (HY)

Highest at -2.65 %

PRE-TAX PROFIT(Q)

Lowest at CNY 15.8 MM

NET PROFIT(Q)

Lowest at CNY 11.96 MM

EPS(Q)

Lowest at CNY 0.12

Here's what is working for Zhe Kuang Heavy Industry Co., Ltd.

Operating Cash Flow

Highest at CNY 37.64 MM and Grown

In each year 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 0.83 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 -22.61% (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 Kuang Heavy Industry Co., Ltd.

Net Sales

At CNY 149.32 MM has Fallen at -12.2%

over average net sales of the previous four periods of CNY 170.06 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Pre-Tax Profit

Lowest at CNY 15.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 15.8 MM has Fallen at -33.01%

over average net sales of the previous four periods of CNY 23.59 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 11.96 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

At CNY 11.96 MM has Fallen at -37.29%

over average net sales of the previous four periods of CNY 19.07 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.12

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -2.65 %

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