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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Dahua Technology Co., Ltd.

Why is Zhejiang Dahua Technology Co., Ltd. ?

With ROE of 9.32%, it has a very attractive valuation with a 1.12 Price to Book Value

Over the past year, while the stock has generated a return of 15.62%, its profits have fallen by -53.7%
At the current price, the company has a high dividend yield of 3.6

Market Beating performance in long term as well as near term

Along with generating 15.62% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

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, Medium Return

Absolute

Risk Adjusted

Volatility

Zhejiang Dahua Technology Co., Ltd.

19.65%

0.71

33.90%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.23%

EBIT Growth (5y)

-13.71%

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

71.92%

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

1.12

EV to EBIT

27.20

EV to EBITDA

16.56

EV to Capital Employed

1.14

EV to Sales

1.13

PEG Ratio

Dividend Yield

3.64%

ROCE (Latest)

4.17%

ROE (Latest)

9.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly 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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,877.36 MM

RAW MATERIAL COST(Y)

Fallen by -4.73% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 1.7%

OPERATING PROFIT(Q)

Highest at CNY 1,286.07 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.52 %

PRE-TAX PROFIT(Q)

At CNY 2,075.25 MM has Grown at 65.19%

NET PROFIT(Q)

Highest at CNY 1,747.03 MM

EPS(Q)

Highest at CNY 0.56

-5What is not working for the Company

NET PROFIT(9M)

At CNY 2,819.18 MM has Grown at -57.89%

DEBT-EQUITY RATIO (HY)

Highest at -13.21 %

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

Operating Cash Flow

Highest at CNY 3,877.36 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Operating Profit

Highest at CNY 1,286.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 14.52 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 2,075.25 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 2,075.25 MM has Grown at 65.19%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 1,747.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.56

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 1.7%

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 -4.73% (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.

Debt-Equity Ratio

Highest at -13.21 %

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