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 hold?

Overall Portfolio exposure to Zhejiang Hangmin Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Zhejiang Hangmin Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Hangmin Co., Ltd.

2.23%

0.41

26.71%

China Shanghai Composite

17.07%

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)

15.45%

EBIT Growth (5y)

8.51%

EBIT to Interest (avg)

24.94

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

1.69

Tax Ratio

14.39%

Dividend Payout Ratio

43.55%

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

1.14

EV to EBIT

3.01

EV to EBITDA

2.39

EV to Capital Employed

1.36

EV to Sales

0.29

PEG Ratio

2.72

Dividend Yield

5.80%

ROCE (Latest)

45.15%

ROE (Latest)

14.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -20.93% (YoY

CASH AND EQV(HY)

Highest at CNY 8,090.68 MM

-7What is not working for the Company

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

DEBTORS TURNOVER RATIO(HY)

Lowest at 12.14 times

NET SALES(Q)

Fallen at -12.52%

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

Cash and Eqv

Highest at CNY 8,090.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -20.93% (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.

Interest Coverage Ratio

Lowest at 1,682.82

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 1,107.45 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Fallen at -12.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 2.95 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 12.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio