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 Management Efficiency with a low ROCE of 0.13%

The company has been able to generate a Return on Capital Employed (avg) of 0.13% 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 30.90% and Operating profit at 14.27% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.93% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 30.90% and Operating profit at 14.27% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At CNY 17.51 MM has Grown at 27.15%
OPERATING CASH FLOW(Y) Lowest at CNY -277.47 MM
ROCE(HY) Lowest at 4.55%

With ROE of 4.13%, it has a expensive valuation with a 8.45 Price to Book Value

Over the past year, while the stock has generated a return of 45.67%, its profits have fallen by -23.5%

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.

42.62%

3.19

59.12%

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)

30.90%

EBIT Growth (5y)

14.27%

EBIT to Interest (avg)

-28.51

Debt to EBITDA (avg)

3.04

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.32

Tax Ratio

Tax Ratio is Negative%

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

205

Industry P/E

Price to Book Value

8.45

EV to EBIT

-861.68

EV to EBITDA

525.22

EV to Capital Employed

6.95

EV to Sales

14.90

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.81%

ROE (Latest)

4.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

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

18What is working for the Company

NET SALES(Q)

Highest at CNY 713.37 MM

PRE-TAX PROFIT(Q)

At CNY 6.17 MM has Grown at 151.81%

RAW MATERIAL COST(Y)

Fallen by -32.85% (YoY

OPERATING PROFIT(Q)

Highest at CNY 46.63 MM

NET PROFIT(Q)

Highest at CNY 84.59 MM

-13What is not working for the Company

INTEREST(HY)

At CNY 17.51 MM has Grown at 27.15%

OPERATING CASH FLOW(Y)

Lowest at CNY -277.47 MM

ROCE(HY)

Lowest at 4.55%

DEBT-EQUITY RATIO (HY)

Highest at 27.68 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.21 times

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

Net Sales

Highest at CNY 713.37 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 713.37 MM has Grown at 31.85%

over average net sales of the previous four periods of CNY 541.04 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 6.17 MM has Grown at 151.81%

over average net sales of the previous four periods of CNY -11.91 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Profit

Highest at CNY 46.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Net Profit

Highest at CNY 84.59 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 84.59 MM has Grown at 93.28%

over average net sales of the previous four periods of CNY 43.77 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -32.85% (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.

Interest

At CNY 17.51 MM has Grown at 27.15%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 27.68 % 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

Operating Cash Flow

Lowest at CNY -277.47 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Lowest at 3.21 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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