Zhejiang Huamei Holding Co., Ltd. (000607) 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 Huamei Holding Co., Ltd.

Why is Zhejiang Huamei Holding Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.41%

The company has been able to generate a Return on Capital Employed (avg) of 1.41% 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 -6.71% and Operating profit at -221.32% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.18% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -6.71% and Operating profit at -221.32% over the last 5 years

The company has declared Negative results for the last 11 consecutive quarters

NET PROFIT(HY) At CNY -326 MM has Grown at -617.02%
INTEREST(HY) At CNY 14.73 MM has Grown at 26.08%
ROCE(HY) Lowest at -25.17%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -16.21%, its profits have fallen by -1093%
At the current price, the company has a high dividend yield of 0

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 Media & Entertainment)

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

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

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Huamei Holding Co., Ltd.

-21.18%

0.06

46.59%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.71%

EBIT Growth (5y)

-221.32%

EBIT to Interest (avg)

-0.47

Debt to EBITDA (avg)

2.12

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.63

Tax Ratio

56.53%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.41%

ROE (avg)

4.18%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.58

EV to EBIT

-9.98

EV to EBITDA

-16.57

EV to Capital Employed

2.70

EV to Sales

2.39

PEG Ratio

Dividend Yield

ROCE (Latest)

-27.08%

ROE (Latest)

-31.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -321.56% (YoY

CASH AND EQV(HY)

Highest at CNY 2,207.02 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.2 times

-18What is not working for the Company

NET PROFIT(HY)

At CNY -326 MM has Grown at -617.02%

INTEREST(HY)

At CNY 14.73 MM has Grown at 26.08%

ROCE(HY)

Lowest at -25.17%

NET SALES(Q)

Lowest at CNY 211.67 MM

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

Cash and Eqv

Highest at CNY 2,207.02 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 4.2 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -321.56% (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 Huamei Holding Co., Ltd.

Net Profit

At CNY -326 MM has Grown at -617.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 14.73 MM has Grown at 26.08%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 211.67 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)