Zhejiang Hailiang Co. Ltd. (002203) 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 Hailiang Co. Ltd.

Why is Zhejiang Hailiang Co. Ltd. ?

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 15.01% and Operating profit at 6.60% 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 8.38% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 15.01% and Operating profit at 6.60% over the last 5 years

The company has declared Negative results for the last 9 consecutive quarters

NET PROFIT(HY) At CNY 244.66 MM has Grown at -53.68%
INTEREST(HY) At CNY 359.89 MM has Grown at 10.77%
OPERATING CASH FLOW(Y) Lowest at CNY -2,118.29 MM

With ROE of 5.69%, it has a very attractive valuation with a 1.72 Price to Book Value

Over the past year, while the stock has generated a return of 16.74%, its profits have fallen by -9.9%
At the current price, the company has a high dividend yield of 1.5

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 Ferrous Metals)

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

Is Zhejiang Hailiang Co. Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Hailiang Co. Ltd.

21.47%

1.05

31.52%

China Shanghai Composite

14.77%

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)

15.01%

EBIT Growth (5y)

6.60%

EBIT to Interest (avg)

15.25

Debt to EBITDA (avg)

6.42

Net Debt to Equity (avg)

1.47

Sales to Capital Employed (avg)

2.24

Tax Ratio

12.74%

Dividend Payout Ratio

50.88%

Pledged Shares

Institutional Holding

ROCE (avg)

19.24%

ROE (avg)

8.38%

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

1.72

EV to EBIT

35.26

EV to EBITDA

19.95

EV to Capital Employed

1.30

EV to Sales

0.48

PEG Ratio

Dividend Yield

1.48%

ROCE (Latest)

3.69%

ROE (Latest)

5.69%

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

No Trend

OBV

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

10What is working for the Company

NET SALES(HY)

At CNY 39,891.6 MM has Grown at 42.15%

PRE-TAX PROFIT(Q)

Highest at CNY 313.35 MM

NET PROFIT(Q)

At CNY 302.52 MM has Grown at 88%

EPS(Q)

Highest at CNY 0.18

-21What is not working for the Company

NET PROFIT(HY)

At CNY 244.66 MM has Grown at -53.68%

INTEREST(HY)

At CNY 359.89 MM has Grown at 10.77%

OPERATING CASH FLOW(Y)

Lowest at CNY -2,118.29 MM

ROCE(HY)

Lowest at 5.37%

RAW MATERIAL COST(Y)

Grown by 13.38% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 147.48 %

Here's what is working for Zhejiang Hailiang Co. Ltd.

Net Sales

At CNY 39,891.6 MM has Grown at 42.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 313.35 MM has Grown at 158.4%

over average net sales of the previous four periods of CNY 121.26 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 313.35 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 302.52 MM has Grown at 88%

over average net sales of the previous four periods of CNY 160.91 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.18

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Zhejiang Hailiang Co. Ltd.

Interest

At CNY 359.89 MM has Grown at 10.77%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -2,118.29 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 147.48 %

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

Raw Material Cost

Grown by 13.38% (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