Zhejiang Hengtong Holding Co., Ltd. (600226) 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 Hengtong Holding Co., Ltd.

Why is Zhejiang Hengtong Holding Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 22.59% and Operating profit at 11.94% over the last 5 years

Negative results in Sep 25

DEBT-EQUITY RATIO (HY) Highest at 8.99 %
INTEREST(Q) At CNY 7.56 MM has Grown at 26.38%
RAW MATERIAL COST(Y) Grown by 32.65% (YoY)

With ROE of 5.82%, it has a attractive valuation with a 3.65 Price to Book Value

Over the past year, while the stock has generated a return of 93.59%, its profits have risen by 14.9% ; the PEG ratio of the company is 4.2

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 Pharmaceuticals & Biotechnology)

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

Is Zhejiang Hengtong Holding Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Hengtong Holding Co., Ltd.

322.59%

3.85

41.33%

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)

30.90%

EBIT Growth (5y)

14.27%

EBIT to Interest (avg)

-50.31

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.32

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.13%

ROE (avg)

7.93%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

138

Industry P/E

Price to Book Value

5.67

EV to EBIT

-586.70

EV to EBITDA

357.61

EV to Capital Employed

4.73

EV to Sales

10.15

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.81%

ROE (Latest)

4.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly 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

16What is working for the Company

NET SALES(Q)

Highest at CNY 696.65 MM

RAW MATERIAL COST(Y)

Fallen by -98.36% (YoY

NET PROFIT(Q)

Highest at CNY 79.15 MM

EPS(Q)

Highest at CNY 0.02

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -13.44 MM has Fallen at -382.09%

OPERATING CASH FLOW(Y)

Lowest at CNY -383.31 MM

NET PROFIT(HY)

At CNY 66.27 MM has Grown at -29.36%

DEBT-EQUITY RATIO (HY)

Highest at 25.19 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.31 times

INTEREST(Q)

Highest at CNY 9.12 MM

OPERATING PROFIT(Q)

Lowest at CNY -11.73 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.68 %

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

Net Sales

Highest at CNY 696.65 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

At CNY 696.65 MM has Grown at 50.83%

over average net sales of the previous four periods of CNY 461.86 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 79.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 79.15 MM has Grown at 89.92%

over average net sales of the previous four periods of CNY 41.67 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -98.36% (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 Hengtong Holding Co., Ltd.

Pre-Tax Profit

At CNY -13.44 MM has Fallen at -382.09%

over average net sales of the previous four periods of CNY -2.79 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest

At CNY 9.12 MM has Grown at 1,676.82%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 25.19 % and Grown

In each half year 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

Debtors Turnover Ratio

Lowest at 3.31 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at CNY -383.31 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 9.12 MM

in the last five periods and Increased by 1,676.82% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -11.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -1.68 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales