Zhejiang Founder Motor Co., Ltd. (002196) 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 Founder Motor Co., Ltd.

Why is Zhejiang Founder Motor Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 21.38% and Operating profit at 11.08% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 1.18% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 21.38% and Operating profit at 11.08% over the last 5 years

With a growth in Net Sales of 13.87%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 5 consecutive negative quarters
RAW MATERIAL COST(Y) Fallen by -51.6% (YoY)
NET SALES(Q) Highest at CNY 747.6 MM
PRE-TAX PROFIT(Q) Highest at CNY 11.27 MM

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Founder Motor Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Zhejiang Founder Motor Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Founder Motor Co., Ltd.

46.37%

3.71

59.99%

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)

21.38%

EBIT Growth (5y)

11.08%

EBIT to Interest (avg)

-16.87

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

0.87

Tax Ratio

63.94%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

1.18%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.54

EV to EBIT

-176.30

EV to EBITDA

62.68

EV to Capital Employed

2.35

EV to Sales

2.41

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.33%

ROE (Latest)

-2.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

22What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -51.6% (YoY

NET SALES(Q)

Highest at CNY 747.6 MM

PRE-TAX PROFIT(Q)

Highest at CNY 11.27 MM

NET PROFIT(Q)

Highest at CNY 20.95 MM

EPS(Q)

Highest at CNY 0.04

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 136.17 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 224.09

DEBT-EQUITY RATIO (HY)

Highest at 92.89 %

Here's what is working for Zhejiang Founder Motor Co., Ltd.

Pre-Tax Profit

At CNY 11.27 MM has Grown at 321.71%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 20.95 MM has Grown at 2,607.26%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 747.6 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 11.27 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 20.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -51.6% (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 Founder Motor Co., Ltd.

Interest Coverage Ratio

Lowest at 224.09

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 136.17 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 92.89 %

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