Zhejiang Fenglong Electric Co., Ltd. (002931) 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 Fenglong Electric Co., Ltd.

Why is Zhejiang Fenglong Electric Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.58% and Operating profit at -27.38% over the last 5 years

The company has declared positive results for the last 2 consecutive quarters

NET PROFIT(HY) At CNY 13.45 MM has Grown at 166.86%
ROCE(HY) Highest at 2.93%
DEBT-EQUITY RATIO (HY) Lowest at -23.08 %

With ROE of 2.07%, it has a expensive valuation with a 3.54 Price to Book Value

Over the past year, while the stock has generated a return of 281.36%, its profits have risen by 220.6% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 0.9

Consistent Returns over the last 3 years

Along with generating 281.36% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Fenglong Electric Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

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

Is Zhejiang Fenglong Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Fenglong Electric Co., Ltd.

284.65%

7.73

69.34%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.58%

EBIT Growth (5y)

-27.38%

EBIT to Interest (avg)

9.08

Debt to EBITDA (avg)

0.13

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.47

Tax Ratio

16.44%

Dividend Payout Ratio

669.64%

Pledged Shares

Institutional Holding

ROCE (avg)

6.80%

ROE (avg)

6.53%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

171

Industry P/E

Price to Book Value

3.54

EV to EBIT

382.23

EV to EBITDA

68.48

EV to Capital Employed

4.33

EV to Sales

6.30

PEG Ratio

0.78

Dividend Yield

0.89%

ROCE (Latest)

1.13%

ROE (Latest)

2.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

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

13What is working for the Company

NET PROFIT(HY)

At CNY 13.45 MM has Grown at 166.86%

ROCE(HY)

Highest at 2.93%

DEBT-EQUITY RATIO (HY)

Lowest at -23.08 %

RAW MATERIAL COST(Y)

Fallen by -56.09% (YoY

-2What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 5.74 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.69 %

Here's what is working for Zhejiang Fenglong Electric Co., Ltd.

Net Profit

At CNY 13.45 MM has Grown at 166.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -23.08 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -56.09% (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 Fenglong Electric Co., Ltd.

Operating Profit

Lowest at CNY 5.74 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales