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

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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 10.34% and Operating profit at -18.44% over the last 5 years

OPERATING PROFIT(Q) Lowest at CNY -1.75 MM
OPERATING PROFIT MARGIN(Q) Lowest at -0.72 %

With ROE of 2.95%, it has a expensive valuation with a 2.33 Price to Book Value

Over the past year, while the stock has generated a return of 20.04%, 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 1.2

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 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.

0.18%

1.83

51.40%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.34%

EBIT Growth (5y)

-18.44%

EBIT to Interest (avg)

1.65

Debt to EBITDA (avg)

0.80

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

0.78

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

2.33

EV to EBIT

88.26

EV to EBITDA

28.36

EV to Capital Employed

2.15

EV to Sales

1.86

PEG Ratio

0.41

Dividend Yield

1.24%

ROCE (Latest)

2.44%

ROE (Latest)

2.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

24What is working for the Company

NET SALES(HY)

At CNY 771.71 MM has Grown at 55.55%

NET PROFIT(HY)

At CNY 14.94 MM has Grown at 128.58%

OPERATING CASH FLOW(Y)

Highest at CNY 138.33 MM

ROCE(HY)

Highest at 3.63%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.89%

PRE-TAX PROFIT(Q)

At CNY 0.78 MM has Grown at 109.88%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.32%

-2What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY -1.75 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.72 %

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

Net Sales

At CNY 771.71 MM has Grown at 55.55%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 14.94 MM has Grown at 128.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 0.78 MM has Grown at 109.88%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

Higher at CNY 14.94 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 2.89% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Operating Cash Flow

Highest at CNY 138.33 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 1.32%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Zhejiang Canaan Technology Ltd.

Operating Profit

Lowest at CNY -1.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.72 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at CNY 4.49 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income