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

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 0.55% and Operating profit at 9.64% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With ROE of 7.46%, it has a fair valuation with a 2.19 Price to Book Value

Over the past year, while the stock has generated a return of 1.16%, its profits have risen by 180.2% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 1.16% in the last 1 year, much lower than market (China Shanghai Composite) returns of 17.07%

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.

1.16%

-1.69

26.89%

China Shanghai Composite

16.67%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.55%

EBIT Growth (5y)

9.64%

EBIT to Interest (avg)

0.07

Debt to EBITDA (avg)

6.93

Net Debt to Equity (avg)

1.76

Sales to Capital Employed (avg)

1.17

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

2.19

EV to EBIT

34.98

EV to EBITDA

13.29

EV to Capital Employed

1.66

EV to Sales

1.32

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

4.74%

ROE (Latest)

7.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

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

3What is working for the Company

CASH AND EQV(HY)

Highest at CNY 3,633.74 MM

DEBT-EQUITY RATIO (HY)

Lowest at 81.11 %

-25What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 7.65

RAW MATERIAL COST(Y)

Grown by 41.57% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.14 times

NET SALES(Q)

Lowest at CNY 1,843.68 MM

OPERATING PROFIT(Q)

Lowest at CNY 2.69 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.15 %

PRE-TAX PROFIT(Q)

Lowest at CNY -8.98 MM

NET PROFIT(Q)

Lowest at CNY -5.16 MM

EPS(Q)

Lowest at CNY -0.01

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

Cash and Eqv

Highest at CNY 3,633.74 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 81.11 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Zhejiang Huatong Meat Products Co., Ltd.

Net Sales

At CNY 1,843.68 MM has Fallen at -19.52%

over average net sales of the previous four periods of CNY 2,290.88 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -8.98 MM has Fallen at -111.89%

over average net sales of the previous four periods of CNY 75.47 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -5.16 MM has Fallen at -107.69%

over average net sales of the previous four periods of CNY 67.07 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 7.65

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 1,843.68 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 2.69 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -8.98 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -5.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 6.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 41.57% (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