Zhejiang Construction Investment Group Co., Ltd. (002761) 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 Construction Investment Group Co., Ltd.

Why is Zhejiang Construction Investment Group Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -1.74% and Operating profit at -36.40% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 15.31% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.74% and Operating profit at -36.40% over the last 5 years

With ROE of 4.87%, it has a very expensive valuation with a 0.91 Price to Book Value

Over the past year, while the stock has generated a return of -16.02%, its profits have risen by 10.8% ; the PEG ratio of the company is 1.7
At the current price, the company has a high dividend yield of 0.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.02% 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 Construction Investment Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Construction Investment Group Co., Ltd.

-20.32%

-0.54

29.51%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.74%

EBIT Growth (5y)

-36.40%

EBIT to Interest (avg)

1.00

Debt to EBITDA (avg)

18.17

Net Debt to Equity (avg)

2.26

Sales to Capital Employed (avg)

2.74

Tax Ratio

41.42%

Dividend Payout Ratio

25.21%

Pledged Shares

Institutional Holding

ROCE (avg)

3.95%

ROE (avg)

15.31%

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

0.91

EV to EBIT

100.32

EV to EBITDA

40.87

EV to Capital Employed

0.97

EV to Sales

0.27

PEG Ratio

1.74

Dividend Yield

0.68%

ROCE (Latest)

0.96%

ROE (Latest)

4.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

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

16What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 159.87 %

RAW MATERIAL COST(Y)

Fallen by -15.86% (YoY

CASH AND EQV(HY)

Highest at CNY 19,676.69 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 59.66 times

PRE-TAX PROFIT(Q)

Highest at CNY 396.49 MM

NET PROFIT(Q)

Highest at CNY 291.92 MM

EPS(Q)

Highest at CNY 0.22

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.07 times

NET SALES(Q)

Lowest at CNY 18,959.08 MM

Here's what is working for Zhejiang Construction Investment Group Co., Ltd.

Net Profit

At CNY 291.92 MM has Grown at 444.29%

over average net sales of the previous four periods of CNY 53.63 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 396.49 MM has Grown at 135.68%

over average net sales of the previous four periods of CNY 168.23 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Lowest at 159.87 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Pre-Tax Profit

Highest at CNY 396.49 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 291.92 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.22

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 19,676.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 59.66 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 -15.86% (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 Construction Investment Group Co., Ltd.

Net Sales

Lowest at CNY 18,959.08 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 1.07 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio