ScoreWhy is Zhejiang Canaan Technology Ltd. ?
1
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)
2
Poor long term growth as Net Sales has grown by an annual rate of 0.47% and Operating profit at -46.54% over the last 5 years
3
The company declared very negative results in Mar'26 after flat results in Dec'25
- INTEREST(Q) At CNY 2.95 MM has Grown at 256.41%
- NET SALES(Q) Lowest at CNY 129.54 MM
- OPERATING PROFIT(Q) Lowest at CNY -16.79 MM
4
With ROE of 2.05%, it has a very expensive valuation with a 1.98 Price to Book Value
- Over the past year, while the stock has generated a return of -10.47%, its profits have fallen by -44.6%
- At the current price, the company has a high dividend yield of 1.4
5
Below par performance in long term as well as near term
- Along with generating -10.47% 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 ReportHow 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?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Zhejiang Canaan Technology Ltd.
2.21%
1.31
32.91%
China Shanghai Composite
21.43%
1.55
13.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.47%
EBIT Growth (5y)
-46.54%
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
97.32%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.56%
ROE (avg)
3.60%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
97
Industry P/E
Price to Book Value
1.98
EV to EBIT
592.62
EV to EBITDA
46.59
EV to Capital Employed
1.89
EV to Sales
1.94
PEG Ratio
NA
Dividend Yield
1.40%
ROCE (Latest)
0.32%
ROE (Latest)
2.05%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 208.79 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 10.34 %
RAW MATERIAL COST(Y)
Fallen by -20.33% (YoY
CASH AND EQV(HY)
Highest at CNY 1,008.69 MM
-33What is not working for the Company
INTEREST(Q)
At CNY 2.95 MM has Grown at 256.41%
NET SALES(Q)
Lowest at CNY 129.54 MM
OPERATING PROFIT(Q)
Lowest at CNY -16.79 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -12.96 %
PRE-TAX PROFIT(Q)
Lowest at CNY -16.84 MM
NET PROFIT(Q)
Lowest at CNY -11.82 MM
EPS(Q)
Lowest at CNY -0.02
Here's what is working for Zhejiang Canaan Technology Ltd.
Operating Cash Flow
Highest at CNY 208.79 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Lowest at 10.34 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Cash and Eqv
Highest at CNY 1,008.69 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -20.33% (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.
Net Sales
At CNY 129.54 MM has Fallen at -47.31%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Pre-Tax Profit
At CNY -16.84 MM has Fallen at -2,265.86%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -11.82 MM has Fallen at -130.8%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest
At CNY 2.95 MM has Grown at 256.41%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Sales
Lowest at CNY 129.54 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY -16.79 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at -12.96 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY -16.84 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY -11.82 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY -0.02
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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