Zhefu Holding Group Co., Ltd. (002266) 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

Zhefu Holding Group Co., Ltd.

Why is Zhefu Holding Group Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 29.85% and Operating profit at -0.09% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 15.23% signifying low profitability per unit of shareholders funds
OPERATING CASH FLOW(Y) Lowest at CNY 391.95 MM
INTEREST COVERAGE RATIO(Q) Lowest at 596.22
RAW MATERIAL COST(Y) Grown by 18.11% (YoY)

With ROE of 8.97%, it has a very attractive valuation with a 1.79 Price to Book Value

Over the past year, while the stock has generated a return of 73.31%, its profits have risen by 43% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 1.3

Market Beating performance in long term as well as near term

Along with generating 73.31% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhefu Holding Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Zhefu Holding Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhefu Holding Group Co., Ltd.

73.31%

1.93

43.17%

China Shanghai Composite

24.7%

1.91

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.85%

EBIT Growth (5y)

-0.09%

EBIT to Interest (avg)

7.14

Debt to EBITDA (avg)

3.30

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

0.94

Tax Ratio

7.08%

Dividend Payout Ratio

26.67%

Pledged Shares

Institutional Holding

ROCE (avg)

9.08%

ROE (avg)

15.23%

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

1.79

EV to EBIT

28.94

EV to EBITDA

17.69

EV to Capital Employed

1.52

EV to Sales

1.27

PEG Ratio

0.46

Dividend Yield

1.27%

ROCE (Latest)

5.24%

ROE (Latest)

8.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 9,792.13 MM

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 391.95 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 596.22

RAW MATERIAL COST(Y)

Grown by 18.11% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 60.4 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.79 times

OPERATING PROFIT(Q)

Lowest at CNY 114.7 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.08 %

PRE-TAX PROFIT(Q)

Lowest at CNY 139.52 MM

NET PROFIT(Q)

Lowest at CNY 134.29 MM

EPS(Q)

Lowest at CNY 0.03

Here's what is working for Zhefu Holding Group Co., Ltd.

Cash and Eqv

Highest at CNY 9,792.13 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Zhefu Holding Group Co., Ltd.

Operating Cash Flow

Lowest at CNY 391.95 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Lowest at 596.22

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 139.52 MM has Fallen at -41.17%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 134.29 MM has Fallen at -42.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 114.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 139.52 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 134.29 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 60.4 %

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

Debtors Turnover Ratio

Lowest at 10.79 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 18.11% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales