Zhejiang Chint Electrics Co., Ltd. (601877) 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 Chint Electrics Co., Ltd.

Why is Zhejiang Chint Electrics Co., Ltd. ?

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 15.79% and Operating profit at 12.54% 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 13.05% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 15.79% and Operating profit at 12.54% over the last 5 years

Flat results in Sep 25

DEBT-EQUITY RATIO (HY) Highest at 126.11 %
INVENTORY TURNOVER RATIO(HY) Lowest at 1.01 times
INTEREST(Q) Highest at CNY 589.92 MM

With ROE of 14.10%, it has a very attractive valuation with a 1.46 Price to Book Value

Over the past year, while the stock has generated a return of 39.43%, its profits have risen by 18.2% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 2.1

Market Beating Performance

The stock has generated a return of 39.43% 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 Chint Electrics Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

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

Is Zhejiang Chint Electrics Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Chint Electrics Co., Ltd.

46.48%

1.64

34.88%

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)

15.79%

EBIT Growth (5y)

12.54%

EBIT to Interest (avg)

4.67

Debt to EBITDA (avg)

2.64

Net Debt to Equity (avg)

0.65

Sales to Capital Employed (avg)

0.77

Tax Ratio

23.73%

Dividend Payout Ratio

33.15%

Pledged Shares

Institutional Holding

ROCE (avg)

10.23%

ROE (avg)

13.05%

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

1.46

EV to EBIT

11.73

EV to EBITDA

9.02

EV to Capital Employed

1.25

EV to Sales

1.50

PEG Ratio

0.57

Dividend Yield

2.06%

ROCE (Latest)

10.70%

ROE (Latest)

14.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 23,345.51 MM

ROCE(HY)

Highest at 10.66%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.02 times

RAW MATERIAL COST(Y)

Fallen by -6.34% (YoY

CASH AND EQV(HY)

Highest at CNY 26,832.35 MM

PRE-TAX PROFIT(Q)

Highest at CNY 2,537.33 MM

NET PROFIT(Q)

Highest at CNY 1,543.92 MM

EPS(Q)

Highest at CNY 0.76

-12What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 126.11 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.01 times

INTEREST(Q)

Highest at CNY 589.92 MM

Here's what is working for Zhejiang Chint Electrics Co., Ltd.

Debtors Turnover Ratio

Highest at 3.02 times 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 23,345.51 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 2,537.33 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 1,543.92 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.76

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 26,832.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -6.34% (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 Chint Electrics Co., Ltd.

Debt-Equity Ratio

Highest at 126.11 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at CNY 589.92 MM

in the last five periods and Increased by 8.28% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 1.01 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio