Zhejiang Dahua Technology Co., Ltd. (002236) 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 Dahua Technology Co., Ltd.

Why is Zhejiang Dahua Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.39% and Operating profit at -2.04% over the last 5 years

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at CNY 1,579.18 MM
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
RAW MATERIAL COST(Y) Grown by 103.12% (YoY)

With ROE of 9.32%, it has a very attractive valuation with a 1.78 Price to Book Value

Over the past year, while the stock has generated a return of 17.39%, its profits have fallen by -53.7%
At the current price, the company has a high dividend yield of 2.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Dahua Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Zhejiang Dahua Technology Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Dahua Technology Co., Ltd.

17.39%

0.28

27.93%

China Shanghai Composite

27.0%

2.10

12.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.39%

EBIT Growth (5y)

-2.04%

EBIT to Interest (avg)

25.70

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.80

Tax Ratio

1.02%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

7.41%

ROE (avg)

13.87%

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

1.78

EV to EBIT

45.69

EV to EBITDA

27.81

EV to Capital Employed

1.91

EV to Sales

1.90

PEG Ratio

Dividend Yield

2.28%

ROCE (Latest)

4.17%

ROE (Latest)

9.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

1What is working for the Company

NET SALES(Q)

Highest at CNY 9,830.6 MM

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,579.18 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 103.12% (YoY

CASH AND EQV(HY)

Lowest at CNY 8,167.9 MM

DEBT-EQUITY RATIO (HY)

Highest at 0 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

DIVIDEND PER SHARE(HY)

Lowest at CNY 0

PRE-TAX PROFIT(Q)

Lowest at CNY 366.09 MM

NET PROFIT(Q)

Lowest at CNY 318.99 MM

EPS(Q)

Lowest at CNY 0

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

Net Sales

Highest at CNY 9,830.6 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

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

Operating Cash Flow

Lowest at CNY 1,579.18 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Lowest at CNY 366.09 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 318.99 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 8,167.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 0 %

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

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at CNY 0

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CNY)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 103.12% (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