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 3.55% and Operating profit at -2.87% 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 8.92%, it has a very attractive valuation with a 1.03 Price to Book Value

Over the past year, while the stock has generated a return of 5.73%, its profits have risen by 15.1% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 4.6

Underperformed the market in the last 1 year

The stock has generated a return of 5.73% in the last 1 year, much lower than market (China Shanghai Composite) returns of 16.83%

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.

-19.87%

0.13

30.77%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.55%

EBIT Growth (5y)

-2.87%

EBIT to Interest (avg)

47.27

Debt to EBITDA (avg)

0.15

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.79

Tax Ratio

10.54%

Dividend Payout Ratio

46.86%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

5.90%

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

1.36

EV to EBIT

22.13

EV to EBITDA

17.13

EV to Capital Employed

1.40

EV to Sales

1.45

PEG Ratio

1.03

Dividend Yield

3.50%

ROCE (Latest)

6.31%

ROE (Latest)

8.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bullish

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

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 59.36%

RAW MATERIAL COST(Y)

Fallen by 0.27% (YoY

DIVIDEND PER SHARE(HY)

Highest at CNY 1.67

OPERATING PROFIT(Q)

Highest at CNY 1,509.38 MM

OPERATING PROFIT MARGIN(Q)

Highest at 15.4 %

-21What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 2,210.72 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 10,506.66

DEBT-EQUITY RATIO (HY)

Highest at -3.85 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.92 times

INTEREST(Q)

Highest at CNY 14.37 MM

PRE-TAX PROFIT(Q)

Fallen at -26%

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

Operating Profit

Highest at CNY 1,509.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 15.4 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend per share

Highest at CNY 1.67

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 59.36%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.27% (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 14.37 MM has Grown at 127.06%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 10,506.66

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 2,210.72 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 14.37 MM

in the last five periods and Increased by 127.06% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

Fallen at -26%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at -3.85 %

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 2.92 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

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