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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Hailiang Co. Ltd.

Why is Zhejiang Hailiang Co. Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 11.38% and Operating profit at 25.08% over the last 5 years
The company is Net-Debt Free
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 11.38% and Operating profit at 25.08% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY -3,338.8 MM
INTEREST(Q) At CNY 153.15 MM has Grown at 17.53%
INVENTORY TURNOVER RATIO(HY) Lowest at 7.38 times

With ROE of 7.16%, it has a very expensive valuation with a 2.32 Price to Book Value

Over the past year, while the stock has generated a return of 147.72%, its profits have risen by 123.5% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 1.4

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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Hailiang Co. Ltd.

144.84%

3.86

51.43%

China Shanghai Composite

20.18%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.38%

EBIT Growth (5y)

25.08%

EBIT to Interest (avg)

15.25

Debt to EBITDA (avg)

6.42

Net Debt to Equity (avg)

1.47

Sales to Capital Employed (avg)

2.13

Tax Ratio

12.74%

Dividend Payout Ratio

48.73%

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

2.32

EV to EBIT

35.13

EV to EBITDA

24.95

EV to Capital Employed

1.58

EV to Sales

0.71

PEG Ratio

0.34

Dividend Yield

1.36%

ROCE (Latest)

4.50%

ROE (Latest)

7.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

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

8What is working for the Company

NET PROFIT(9M)

At CNY 547.28 MM has Grown at 65.5%

INTEREST COVERAGE RATIO(Q)

Highest at 454.09

RAW MATERIAL COST(Y)

Fallen by -58.14% (YoY

NET SALES(Q)

Highest at CNY 24,030.49 MM

PRE-TAX PROFIT(Q)

At CNY 508.9 MM has Grown at 72.77%

EPS(Q)

Highest at CNY 0.2

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -3,338.8 MM

INTEREST(Q)

At CNY 153.15 MM has Grown at 17.53%

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.38 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.62 times

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

Interest Coverage Ratio

Highest at 454.09

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At CNY 547.28 MM has Grown at 65.5%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 24,030.49 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 508.9 MM has Grown at 72.77%

over average net sales of the previous four periods of CNY 294.55 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

EPS

Highest at CNY 0.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -58.14% (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 Hailiang Co. Ltd.

Operating Cash Flow

Lowest at CNY -3,338.8 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 153.15 MM has Grown at 17.53%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 7.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 6.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio