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 7.10% and Operating profit at -14.65% over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

NET PROFIT(9M) At CNY 51.88 MM has Grown at -42.62%
INTEREST(9M) At CNY 0.06 MM has Grown at inf%
NET SALES(9M) At CNY 469.08 MM has Grown at -9.79%

With ROE of 2.79%, it has a expensive valuation with a 1.82 Price to Book Value

Over the past year, while the stock has generated a return of 64.69%, its profits have fallen by -56.7%
At the current price, the company has a high dividend yield of 1.2

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhe Kuang Heavy Industry Co., Ltd.

64.69%

1.16

60.76%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.10%

EBIT Growth (5y)

-14.65%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.34

Tax Ratio

24.93%

Dividend Payout Ratio

37.57%

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

1.82

EV to EBIT

56.49

EV to EBITDA

28.51

EV to Capital Employed

1.91

EV to Sales

4.15

PEG Ratio

Dividend Yield

1.21%

ROCE (Latest)

3.39%

ROE (Latest)

2.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly 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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 68.09 MM

NET SALES(HY)

At CNY 298.5 MM has Grown at 23.58%

NET PROFIT(Q)

At CNY 17.54 MM has Grown at 113.39%

RAW MATERIAL COST(Y)

Fallen by -60.39% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 26.13 MM

-10What is not working for the Company

NET PROFIT(9M)

At CNY 51.88 MM has Grown at -42.62%

INTEREST(9M)

At CNY 0.06 MM has Grown at inf%

NET SALES(9M)

At CNY 469.08 MM has Grown at -9.79%

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

Pre-Tax Profit

At CNY 26.13 MM has Grown at 121.76%

over average net sales of the previous four periods of CNY 11.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 17.54 MM has Grown at 113.39%

over average net sales of the previous four periods of CNY 8.22 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 298.5 MM has Grown at 23.58%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 68.09 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 26.13 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -60.39% (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.

Interest

At CNY 0.06 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)