Zhejiang Huatong Meat Products Co., Ltd. (002840) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Huatong Meat Products Co., Ltd.

Why is Zhejiang Huatong Meat Products Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.16%

Poor long term growth as Net Sales has grown by an annual rate of 1.86% and Operating profit at 19.92% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a fall in Net Profit of -47.41%, the company declared Very Negative results in Mar 25

The company has declared negative results in Jan 70 after 4 consecutive negative quarters
INVENTORY TURNOVER RATIO(HY) Lowest at 7.37%
DEBTORS TURNOVER RATIO(HY) Lowest at 55.04%
NET SALES(Q) At CNY 2,072.37 MM has Fallen at -8.6%

With ROE of 7.46%, it has a fair valuation with a 1.74 Price to Book Value

Over the past year, while the stock has generated a return of -8.25%, its profits have risen by 180.2% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -8.25% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 FMCG)

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

Is Zhejiang Huatong Meat Products Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Huatong Meat Products Co., Ltd.

-100.0%

-1.36

33.60%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.86%

EBIT Growth (5y)

19.92%

EBIT to Interest (avg)

0.07

Debt to EBITDA (avg)

6.93

Net Debt to Equity (avg)

1.76

Sales to Capital Employed (avg)

1.21

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.16%

ROE (avg)

5.26%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.74

EV to EBIT

29.79

EV to EBITDA

11.32

EV to Capital Employed

1.41

EV to Sales

1.13

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

4.74%

ROE (Latest)

7.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

14What is working for the Company

ROCE(HY)

Highest at 12.08%

RAW MATERIAL COST(Y)

Fallen by -421.46% (YoY

PRE-TAX PROFIT(Q)

At CNY 42.04 MM has Grown at 74.16%

NET PROFIT(Q)

At CNY 34.2 MM has Grown at 87.32%

-3What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.37%

DEBTORS TURNOVER RATIO(HY)

Lowest at 55.04%

NET SALES(Q)

At CNY 2,072.37 MM has Fallen at -8.6%

Here's what is working for Zhejiang Huatong Meat Products Co., Ltd.

Pre-Tax Profit

At CNY 42.04 MM has Grown at 74.16%

over average net sales of the previous four periods of CNY 24.14 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 34.2 MM has Grown at 87.32%

over average net sales of the previous four periods of CNY 18.26 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -421.46% (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 Huatong Meat Products Co., Ltd.

Net Sales

At CNY 2,072.37 MM has Fallen at -8.6%

over average net sales of the previous four periods of CNY 2,267.27 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 7.37%

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 55.04%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at CNY 0.71 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income