Zhejiang Baida Precision Manufacturing Corp. (603331) 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 Baida Precision Manufacturing Corp.

Why is Zhejiang Baida Precision Manufacturing Corp. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 12.33% and Operating profit at 1.85% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 7.14% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.33% and Operating profit at 1.85% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INVENTORY TURNOVER RATIO(HY) Lowest at 3.2 times
NET SALES(Q) Lowest at CNY 330.25 MM
INTEREST(Q) Highest at CNY 11.7 MM

With ROE of 0.74%, it has a fair valuation with a 1.67 Price to Book Value

Over the past year, while the stock has generated a return of 69.09%, its profits have fallen by -89.9%
At the current price, the company has a high dividend yield of 0.7

Market Beating Performance

The stock has generated a return of 69.09% 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 Zhejiang Baida Precision Manufacturing Corp. 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 Zhejiang Baida Precision Manufacturing Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Baida Precision Manufacturing Corp.

53.04%

1.69

45.22%

China Shanghai Composite

15.17%

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)

12.33%

EBIT Growth (5y)

1.85%

EBIT to Interest (avg)

3.80

Debt to EBITDA (avg)

3.45

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

0.66

Tax Ratio

100.00%

Dividend Payout Ratio

48.99%

Pledged Shares

Institutional Holding

ROCE (avg)

6.50%

ROE (avg)

7.14%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

225

Industry P/E

Price to Book Value

1.67

EV to EBIT

173.48

EV to EBITDA

19.53

EV to Capital Employed

1.44

EV to Sales

1.90

PEG Ratio

Dividend Yield

0.74%

ROCE (Latest)

0.83%

ROE (Latest)

0.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 482.1 MM

PRE-TAX PROFIT(Q)

At CNY 15.61 MM has Grown at 994.81%

NET PROFIT(Q)

At CNY 14.9 MM has Grown at 144.65%

RAW MATERIAL COST(Y)

Fallen by -36.18% (YoY

-15What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.2 times

NET SALES(Q)

Lowest at CNY 330.25 MM

INTEREST(Q)

Highest at CNY 11.7 MM

Here's what is working for Zhejiang Baida Precision Manufacturing Corp.

Pre-Tax Profit

At CNY 15.61 MM has Grown at 994.81%

over average net sales of the previous four periods of CNY -1.74 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 482.1 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)

Net Profit

At CNY 14.9 MM has Grown at 144.65%

over average net sales of the previous four periods of CNY 6.09 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -36.18% (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 Baida Precision Manufacturing Corp.

Net Sales

At CNY 330.25 MM has Fallen at -13.35%

over average net sales of the previous four periods of CNY 381.13 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 11.7 MM has Grown at 28.69%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 330.25 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 11.7 MM

in the last five periods and Increased by 28.69% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 3.2 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio