ZheJiang AoKang Shoes Co., Ltd. (603001) 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

ZheJiang AoKang Shoes Co., Ltd.

Why is ZheJiang AoKang Shoes Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.22%

The company has been able to generate a Return on Capital Employed (avg) of 0.22% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -1.71% and Operating profit at -202.66% over the last 5 years

The company has declared negative results for the last 4 consecutive quarters

The company has declared negative results in Jun 24 after 2 consecutive negative quarters
NET PROFIT(9M) At CNY -220.56 MM has Grown at -24.21%
INTEREST(HY) At CNY 3.89 MM has Grown at 8.41%
ROCE(HY) Lowest at -11.33%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 78.27%, its profits have fallen by -81.2%

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 Footwear)

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

Is ZheJiang AoKang Shoes Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

ZheJiang AoKang Shoes Co., Ltd.

120.25%

1.58

52.99%

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)

-10.94%

EBIT Growth (5y)

-246.52%

EBIT to Interest (avg)

-17.96

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

0.83

Tax Ratio

13.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.22%

ROE (avg)

0.34%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.47

EV to EBIT

-14.08

EV to EBITDA

-123.86

EV to Capital Employed

1.59

EV to Sales

1.71

PEG Ratio

Dividend Yield

ROCE (Latest)

-11.29%

ROE (Latest)

-8.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

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

17What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -72.84% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -19.36 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.88 times

PRE-TAX PROFIT(Q)

Highest at CNY 10.63 MM

NET PROFIT(Q)

Highest at CNY 9.67 MM

EPS(Q)

Highest at CNY 0.06

-10What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.29 times

NET SALES(Q)

At CNY 426.79 MM has Fallen at -11.09%

Here's what is working for ZheJiang AoKang Shoes Co., Ltd.

Pre-Tax Profit

At CNY 10.63 MM has Grown at 116.36%

over average net sales of the previous four periods of CNY -64.97 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 9.67 MM has Grown at 115.54%

over average net sales of the previous four periods of CNY -62.22 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 10.63 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 9.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -19.36 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.88 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 -72.84% (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 ZheJiang AoKang Shoes Co., Ltd.

Net Sales

At CNY 426.79 MM has Fallen at -11.09%

over average net sales of the previous four periods of CNY 480.04 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 2.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio