Why is Zhejiang Hengtong Holding Co., Ltd. ?
1
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
2
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)
3
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
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.
94.83%
3.85
41.33%
China Shanghai Composite
24.7%
1.58
14.20%
Quality key factors
Factor
Value
Sales Growth (5y)
22.59%
EBIT Growth (5y)
11.94%
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)
0.27
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.13%
ROE (avg)
7.93%
Valuation Key Factors 
Factor
Value
P/E Ratio
63
Industry P/E
Price to Book Value
3.65
EV to EBIT
-217.27
EV to EBITDA
154.35
EV to Capital Employed
3.52
EV to Sales
8.33
PEG Ratio
4.21
Dividend Yield
NA
ROCE (Latest)
-1.62%
ROE (Latest)
5.82%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
7What is working for the Company
NET SALES(Q)
Highest at CNY 441.33 MM
-17What is not working for the Company
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
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.81 times
PRE-TAX PROFIT(Q)
At CNY 5.71 MM has Fallen at -40.44%
Here's what is working for Zhejiang Hengtong Holding Co., Ltd.
Net Sales
Highest at CNY 441.33 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Here's what is not working for Zhejiang Hengtong Holding Co., Ltd.
Interest
At CNY 7.56 MM has Grown at 26.38%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Debt-Equity Ratio
Highest at 8.99 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Pre-Tax Profit
At CNY 5.71 MM has Fallen at -40.44%
over average net sales of the previous four periods of CNY 9.59 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Debtors Turnover Ratio
Lowest at 3.81 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 32.65% (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






