Zhejiang Communications Technology Co., Ltd. (002061) 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 Communications Technology Co., Ltd.

Why is Zhejiang Communications Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.06% and Operating profit at 5.77% over the last 5 years

Negative results in Sep 25

ROCE(HY) Lowest at 7.78%
INTEREST COVERAGE RATIO(Q) Lowest at 338.68
RAW MATERIAL COST(Y) Grown by 13.68% (YoY)

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 -4.27%, its profits have fallen by -3%
At the current price, the company has a high dividend yield of 2.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.27% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 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, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Communications Technology Co., Ltd.

-3.23%

0.08

22.54%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.06%

EBIT Growth (5y)

5.77%

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

Institutional Holding

ROCE (avg)

9.97%

ROE (avg)

11.27%

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

0.71

EV to EBIT

10.65

EV to EBITDA

7.80

EV to Capital Employed

0.79

EV to Sales

0.36

PEG Ratio

Dividend Yield

2.93%

ROCE (Latest)

7.44%

ROE (Latest)

9.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,421.41 MM

DEBT-EQUITY RATIO (HY)

Lowest at 27.76 %

-15What is not working for the Company

ROCE(HY)

Lowest at 7.78%

INTEREST COVERAGE RATIO(Q)

Lowest at 338.68

RAW MATERIAL COST(Y)

Grown by 13.68% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.15 times

OPERATING PROFIT(Q)

Lowest at CNY 314.7 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.46 %

PRE-TAX PROFIT(Q)

Fallen at -34.47%

NET PROFIT(Q)

Lowest at CNY 169.54 MM

EPS(Q)

Lowest at CNY 0.06

Here's what is working for Zhejiang Communications Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 3,421.41 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at 27.76 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Zhejiang Communications Technology Co., Ltd.

Interest Coverage Ratio

Lowest at 338.68

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 169.54 MM has Fallen at -48.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 314.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -34.47%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 169.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Lowest at 1.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 13.68% (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