Why is Zhejiang Communications Technology Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 9.25% and Operating profit at 5.54% over the last 5 years
2
Negative results in Mar 25
- INTEREST(HY) At CNY 244.69 MM has Grown at 24.47%
- ROCE(HY) Lowest at 8.98%
- INTEREST COVERAGE RATIO(Q) Lowest at 258.8
3
With ROE of 9.24%, it has a expensive valuation with a 0.71 Price to Book Value
- Over the past year, while the stock has generated a return of -8.67%, its profits have fallen by -3%
- At the current price, the company has a high dividend yield of 2.9
4
Below par performance in long term as well as near term
- Along with generating -8.67% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 Construction)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Zhejiang Communications Technology Co., Ltd. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Zhejiang Communications Technology Co., Ltd.
-9.15%
0.67
23.30%
China Shanghai Composite
14.77%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
9.25%
EBIT Growth (5y)
5.54%
EBIT to Interest (avg)
4.36
Debt to EBITDA (avg)
2.02
Net Debt to Equity (avg)
0.34
Sales to Capital Employed (avg)
1.60
Tax Ratio
26.33%
Dividend Payout Ratio
24.80%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.97%
ROE (avg)
11.27%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.71
EV to EBIT
10.67
EV to EBITDA
7.82
EV to Capital Employed
0.79
EV to Sales
0.36
PEG Ratio
NA
Dividend Yield
2.92%
ROCE (Latest)
7.44%
ROE (Latest)
9.24%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -4.99% (YoY
CASH AND EQV(HY)
Highest at CNY 22,462.25 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 26.92%
-13What is not working for the Company
INTEREST(HY)
At CNY 244.69 MM has Grown at 24.47%
ROCE(HY)
Lowest at 8.98%
INTEREST COVERAGE RATIO(Q)
Lowest at 258.8
OPERATING PROFIT(Q)
Lowest at CNY 274.72 MM
Here's what is working for Zhejiang Communications Technology Co., Ltd.
Cash and Eqv
Highest at CNY 22,462.25 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 26.92%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -4.99% (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 Communications Technology Co., Ltd.
Interest
At CNY 244.69 MM has Grown at 24.47%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 258.8
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 274.72 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)






