Zhejiang Hangmin Co., Ltd. (600987) 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 Hangmin Co., Ltd.

Why is Zhejiang Hangmin Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 15.45% and Operating profit at 8.51% over the last 5 years

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 1,107.45 MM
INTEREST COVERAGE RATIO(Q) Lowest at 1,682.82
INVENTORY TURNOVER RATIO(HY) Lowest at 2.95 times

With ROE of 14.87%, it has a very attractive valuation with a 1.14 Price to Book Value

Over the past year, while the stock has generated a return of 20.09%, its profits have risen by 2.8% ; the PEG ratio of the company is 2.7
At the current price, the company has a high dividend yield of 5.8

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 Garments & Apparels)

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

Is Zhejiang Hangmin Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Hangmin Co., Ltd.

-100.0%

0.41

26.71%

China Shanghai Composite

20.18%

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)

8.58%

EBIT Growth (5y)

1.99%

EBIT to Interest (avg)

24.94

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

1.66

Tax Ratio

14.39%

Dividend Payout Ratio

48.62%

Pledged Shares

Institutional Holding

ROCE (avg)

35.71%

ROE (avg)

13.78%

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

0.91

EV to EBIT

2.47

EV to EBITDA

1.94

EV to Capital Employed

0.75

EV to Sales

0.18

PEG Ratio

Dividend Yield

5.90%

ROCE (Latest)

30.42%

ROE (Latest)

8.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 9,015.26 MM

DEBT-EQUITY RATIO (HY)

Lowest at -64.41 %

-44What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 671.57 MM

PRE-TAX PROFIT(Q)

At CNY 196.68 MM has Fallen at -59.36%

NET PROFIT(Q)

At CNY 138.82 MM has Fallen at -63.32%

ROCE(HY)

Lowest at 11.06%

INTEREST COVERAGE RATIO(Q)

Lowest at 987.85

RAW MATERIAL COST(Y)

Grown by 22.02% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.52 times

NET SALES(Q)

Lowest at CNY 2,046.38 MM

INTEREST(Q)

Highest at CNY 18.89 MM

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

Cash and Eqv

Highest at CNY 9,015.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -64.41 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

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

Net Sales

At CNY 2,046.38 MM has Fallen at -30.61%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 196.68 MM has Fallen at -59.36%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 138.82 MM has Fallen at -63.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 671.57 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 18.89 MM has Grown at 81.56%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 987.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 2,046.38 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 18.89 MM

in the last five periods and Increased by 81.56% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 2.52 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 22.02% (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