Zhejiang Chenfeng Science & Technology Co., Ltd. (603685) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Chenfeng Science & Technology Co., Ltd.

Why is Zhejiang Chenfeng Science & Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.27%

The company has been able to generate a Return on Capital Employed (avg) of 4.27% signifying low profitability per unit of total capital (equity and debt)

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 2.69% and Operating profit at -19.54% 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 4.88% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.69% and Operating profit at -19.54% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 41.17
CASH AND EQV(HY) Lowest at CNY 506.48 MM
OPERATING PROFIT(Q) Lowest at CNY 5.8 MM

With ROE of -0.27%, it has a very expensive valuation with a 2.62 Price to Book Value

Over the past year, while the stock has generated a return of 124.44%, its profits have fallen by -103.9%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Chenfeng Science & Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Zhejiang Chenfeng Science & Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Chenfeng Science & Technology Co., Ltd.

116.83%

3.73

45.12%

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)

2.69%

EBIT Growth (5y)

-19.54%

EBIT to Interest (avg)

3.95

Debt to EBITDA (avg)

5.58

Net Debt to Equity (avg)

1.35

Sales to Capital Employed (avg)

0.44

Tax Ratio

44.70%

Dividend Payout Ratio

33.54%

Pledged Shares

Institutional Holding

ROCE (avg)

4.27%

ROE (avg)

4.88%

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

2.62

EV to EBIT

106.91

EV to EBITDA

23.96

EV to Capital Employed

1.70

EV to Sales

3.79

PEG Ratio

Dividend Yield

0.04%

ROCE (Latest)

1.59%

ROE (Latest)

-0.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

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

19What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 248.51 MM

PRE-TAX PROFIT(Q)

At CNY 5.5 MM has Grown at 371.48%

NET PROFIT(Q)

At CNY 10.6 MM has Grown at 547.72%

RAW MATERIAL COST(Y)

Fallen by -9.24% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.97 times

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 41.17

CASH AND EQV(HY)

Lowest at CNY 506.48 MM

OPERATING PROFIT(Q)

Lowest at CNY 5.8 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.98 %

Here's what is working for Zhejiang Chenfeng Science & Technology Co., Ltd.

Pre-Tax Profit

At CNY 5.5 MM has Grown at 371.48%

over average net sales of the previous four periods of CNY -2.03 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 10.6 MM has Grown at 547.72%

over average net sales of the previous four periods of CNY 1.64 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 248.51 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)

Inventory Turnover Ratio

Highest at 3.97 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 -9.24% (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 Chenfeng Science & Technology Co., Ltd.

Interest Coverage Ratio

Lowest at 41.17

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 5.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 506.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents