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.

14.75%

1.64

34.88%

China Shanghai Composite

21.43%

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)

13.87%

EBIT Growth (5y)

12.62%

EBIT to Interest (avg)

4.67

Debt to EBITDA (avg)

2.64

Net Debt to Equity (avg)

0.65

Sales to Capital Employed (avg)

0.75

Tax Ratio

23.73%

Dividend Payout Ratio

28.53%

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

1.21

EV to EBIT

9.40

EV to EBITDA

7.70

EV to Capital Employed

1.13

EV to Sales

1.29

PEG Ratio

0.52

Dividend Yield

4.68%

ROCE (Latest)

12.00%

ROE (Latest)

13.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 25,443.25 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.2 times

CASH AND EQV(HY)

Highest at CNY 26,997.21 MM

NET SALES(Q)

Highest at CNY 21,303.39 MM

-8What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.99 times

RAW MATERIAL COST(Y)

Grown by 17.24% (YoY

INTEREST(Q)

Highest at CNY 610.92 MM

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

Operating Cash Flow

Highest at CNY 25,443.25 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)

Net Sales

At CNY 21,303.39 MM has Grown at 44.08%

over average net sales of the previous four periods of CNY 14,786.21 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 3.2 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

Net Sales

Highest at CNY 21,303.39 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 26,997.21 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Zhejiang Chint Electrics Co., Ltd.

Interest

At CNY 610.92 MM has Grown at 73.68%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 0.99 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at CNY 610.92 MM

in the last five periods and Increased by 73.68% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 17.24% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales