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 Management Efficiency with a low ROCE of 35.71%

The company has been able to generate a Return on Capital Employed (avg) of 35.71% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 8.58% and Operating profit at 1.99% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 13.78% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.58% and Operating profit at 1.99% over the last 5 years

With a fall in Operating Profit of -7%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 3 consecutive quarters
NET PROFIT(HY) At CNY 292.39 MM has Grown at -46.67%
OPERATING CASH FLOW(Y) Lowest at CNY 1,104.21 MM
INTEREST(9M) At CNY 40.21 MM has Grown at 7.66%

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.

-11.56%

-0.49

27.51%

China Shanghai Composite

3.23%

0.23

14.72%

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)

22.13

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

1.66

Tax Ratio

14.56%

Dividend Payout Ratio

48.62%

Pledged Shares

Institutional Holding

ROCE (avg)

36.43%

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

2.42

EV to EBITDA

1.90

EV to Capital Employed

0.74

EV to Sales

0.18

PEG Ratio

Dividend Yield

5.94%

ROCE (Latest)

30.42%

ROE (Latest)

8.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

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

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 2,347.48

RAW MATERIAL COST(Y)

Fallen by -29.27% (YoY

CASH AND EQV(HY)

Highest at CNY 8,864.02 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.91 %

-30What is not working for the Company

NET PROFIT(HY)

At CNY 292.39 MM has Grown at -46.67%

OPERATING CASH FLOW(Y)

Lowest at CNY 1,104.21 MM

INTEREST(9M)

At CNY 40.21 MM has Grown at 7.66%

ROCE(HY)

Lowest at 10.98%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.81 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.17 times

NET SALES(Q)

Lowest at CNY 1,841.45 MM

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

Interest Coverage Ratio

Highest at 2,347.48

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin

Highest at 13.91 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at CNY 8,864.02 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -29.27% (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 Hangmin Co., Ltd.

Net Profit

At CNY 292.39 MM has Grown at -46.67%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,841.45 MM has Fallen at -26.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 1,104.21 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)

Inventory Turnover Ratio

Lowest at 2.81 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

At CNY 40.21 MM has Grown at 7.66%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 1,841.45 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 9.17 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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