Zhejiang Canaan Technology Ltd. (300412) 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 Canaan Technology Ltd.

Why is Zhejiang Canaan Technology Ltd. ?

Poor Management Efficiency with a low ROCE of 3.56%

The company has been able to generate a Return on Capital Employed (avg) of 3.56% 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 7.44% and Operating profit at -17.05% over the last 5 years

NET SALES(Q) Fallen at -10.8%
INTEREST(Q) Highest at CNY 4.61 MM
OPERATING PROFIT(Q) Lowest at CNY -4.53 MM

With ROE of 2.95%, it has a expensive valuation with a 2.53 Price to Book Value

Over the past year, while the stock has generated a return of -4.29%, its profits have risen by 194.8% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 1.1

Below par performance in long term as well as near term

Along with generating -4.29% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Pharmaceuticals & Biotechnology)

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

Is Zhejiang Canaan Technology Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Canaan Technology Ltd.

-2.27%

1.93

38.98%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.44%

EBIT Growth (5y)

-17.05%

EBIT to Interest (avg)

1.65

Debt to EBITDA (avg)

0.80

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

0.79

Tax Ratio

11.27%

Dividend Payout Ratio

82.30%

Pledged Shares

Institutional Holding

ROCE (avg)

3.56%

ROE (avg)

3.60%

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

2.53

EV to EBIT

95.40

EV to EBITDA

30.65

EV to Capital Employed

2.33

EV to Sales

2.01

PEG Ratio

0.44

Dividend Yield

1.15%

ROCE (Latest)

2.44%

ROE (Latest)

2.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 202.61 MM

RAW MATERIAL COST(Y)

Fallen by -2.41% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 11.81 %

-21What is not working for the Company

NET SALES(Q)

Fallen at -10.8%

INTEREST(Q)

Highest at CNY 4.61 MM

OPERATING PROFIT(Q)

Lowest at CNY -4.53 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.7 %

PRE-TAX PROFIT(Q)

Lowest at CNY -3.75 MM

NET PROFIT(Q)

Fallen at -27.9%

Here's what is working for Zhejiang Canaan Technology Ltd.

Operating Cash Flow

Highest at CNY 202.61 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at 11.81 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -2.41% (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 Canaan Technology Ltd.

Pre-Tax Profit

At CNY -3.75 MM has Fallen at -71.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

At CNY 4.61 MM has Grown at 12.92%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Fallen at -10.8%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 4.61 MM

in the last five periods and Increased by 12.92% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -4.53 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -1.7 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -3.75 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -27.9%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)