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)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -5.51% and Operating profit at -5.09% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
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 -5.51% and Operating profit at -5.09% over the last 5 years

With a fall in Net Sales of -18.8%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 7 consecutive quarters
NET PROFIT(HY) At CNY -20.16 MM has Grown at -190.57%
OPERATING CASH FLOW(Y) Lowest at CNY 127.79 MM
INTEREST(HY) At CNY 16.64 MM has Grown at 8.14%

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 3.47%, its profits have fallen by -222.5%
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, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Huamei Holding Co., Ltd.

5.21%

0.60

45.84%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.51%

EBIT Growth (5y)

-5.09%

EBIT to Interest (avg)

-0.47

Debt to EBITDA (avg)

2.12

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.67

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

2.85

EV to EBIT

-34.49

EV to EBITDA

119.81

EV to Capital Employed

2.86

EV to Sales

3.57

PEG Ratio

Dividend Yield

ROCE (Latest)

-8.31%

ROE (Latest)

-5.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -73.31% (YoY

NET PROFIT(Q)

Highest at CNY -4.88 MM

EPS(Q)

Highest at CNY -0

-29What is not working for the Company

NET PROFIT(HY)

At CNY -20.16 MM has Grown at -190.57%

OPERATING CASH FLOW(Y)

Lowest at CNY 127.79 MM

INTEREST(HY)

At CNY 16.64 MM has Grown at 8.14%

ROCE(HY)

Lowest at -4.88%

NET SALES(Q)

At CNY 308.47 MM has Fallen at -18.8%

INVENTORY TURNOVER RATIO(HY)

Lowest at 34.83 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.22 times

OPERATING PROFIT(Q)

Lowest at CNY -15.6 MM

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

Net Profit

Highest at CNY -4.88 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -73.31% (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.

Operating Cash Flow

Lowest at CNY 127.79 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 308.47 MM has Fallen at -18.8%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 16.64 MM has Grown at 8.14%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -15.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 34.83 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 3.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio