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

Flat results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at -9.11 %
INVENTORY TURNOVER RATIO(HY) Lowest at 3.07 times
INTEREST(Q) Highest at CNY 6.33 MM

With ROE of 9.63%, it has a attractive valuation with a 1.57 Price to Book Value

Over the past year, while the stock has generated a return of 7.75%, its profits have risen by 23.5% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 3.6

Underperformed the market in the last 1 year

The stock has generated a return of 7.75% in the last 1 year, much lower than market (China Shanghai Composite) returns of 20.96%

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.

7.75%

0.11

29.64%

China Shanghai Composite

20.96%

1.56

13.41%

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)

0.79

Tax Ratio

1.02%

Dividend Payout Ratio

46.86%

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

1.57

EV to EBIT

27.87

EV to EBITDA

23.18

EV to Capital Employed

1.57

EV to Sales

1.81

PEG Ratio

0.71

Dividend Yield

3.57%

ROCE (Latest)

5.64%

ROE (Latest)

9.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -14.97% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 1.96 times

-5What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -9.11 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.07 times

INTEREST(Q)

Highest at CNY 6.33 MM

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

Debtors Turnover Ratio

Highest at 1.96 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -14.97% (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 Dahua Technology Co., Ltd.

Interest

At CNY 6.33 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 6.33 MM

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

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -9.11 %

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 3.07 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio