Zhejiang Dragon Technology Co., Ltd. () 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 Dragon Technology Co., Ltd.

Why is Zhejiang Dragon Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.10% and Operating profit at 6.38% over the last 5 years

Negative results in Sep 25

INTEREST(HY) At CNY 0.55 MM has Grown at 76.75%
INTEREST COVERAGE RATIO(Q) Lowest at 11,466.85
OPERATING PROFIT(Q) Lowest at CNY 45.64 MM

With ROE of 8.77%, it has a attractive valuation with a 0.68 Price to Book Value

Over the past year, while the stock has generated a return of 6.52%, its profits have fallen by -7%

Underperformed the market in the last 1 year

The stock has generated a return of 6.52% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Chemicals & Petrochemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Dragon Technology Co., Ltd.

12.51%

0.94

34.75%

China Shanghai Composite

16.78%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.71%

EBIT Growth (5y)

-12.82%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

0.35

Tax Ratio

17.62%

Dividend Payout Ratio

31.58%

Pledged Shares

Institutional Holding

ROCE (avg)

20.66%

ROE (avg)

8.47%

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

0.51

EV to EBIT

-0.28

EV to EBITDA

-0.22

EV to Capital Employed

-0.04

EV to Sales

-0.06

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

6.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 232.14 MM

NET SALES(Q)

At CNY 184.96 MM has Grown at 21.55%

-17What is not working for the Company

INTEREST(HY)

At CNY 0.74 MM has Grown at 63.06%

NET PROFIT(HY)

At CNY 53.3 MM has Grown at -40.79%

RAW MATERIAL COST(Y)

Grown by 8.4% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 19.97 %

PRE-TAX PROFIT(Q)

Lowest at CNY 31.37 MM

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

Operating Cash Flow

Highest at CNY 232.14 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)

Net Sales

At CNY 184.96 MM has Grown at 21.55%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

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

Interest

At CNY 0.74 MM has Grown at 63.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 53.3 MM has Grown at -40.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit Margin

Lowest at 19.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 31.37 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -25.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 8.4% (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