Zhejiang Int'l Group Co., Ltd. (000411) 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 Int'l Group Co., Ltd.

Why is Zhejiang Int'l Group Co., Ltd. ?

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 6.25% and Operating profit at 10.50% 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 16.05% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.25% and Operating profit at 10.50% over the last 5 years

ROCE(HY) Lowest at 10.7%
INTEREST COVERAGE RATIO(Q) Lowest at 509.73
INVENTORY TURNOVER RATIO(HY) Lowest at 7.58 times

With ROE of 12.74%, it has a attractive valuation with a 1.23 Price to Book Value

Over the past year, while the stock has generated a return of 0.85%, its profits have risen by 9.4% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 3.3

Underperformed the market in the last 1 year

The stock has generated a return of 0.85% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.17%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Int'l Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Zhejiang Int'l Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Int'l Group Co., Ltd.

0.85%

0.24

33.87%

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)

6.25%

EBIT Growth (5y)

10.50%

EBIT to Interest (avg)

4.91

Debt to EBITDA (avg)

4.05

Net Debt to Equity (avg)

0.97

Sales to Capital Employed (avg)

3.50

Tax Ratio

24.16%

Dividend Payout Ratio

37.57%

Pledged Shares

Institutional Holding

ROCE (avg)

11.23%

ROE (avg)

16.05%

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

1.23

EV to EBIT

10.48

EV to EBITDA

8.53

EV to Capital Employed

1.13

EV to Sales

0.29

PEG Ratio

1.03

Dividend Yield

3.35%

ROCE (Latest)

10.78%

ROE (Latest)

12.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 635.38 MM

RAW MATERIAL COST(Y)

Fallen by -12.96% (YoY

-12What is not working for the Company

ROCE(HY)

Lowest at 10.7%

INTEREST COVERAGE RATIO(Q)

Lowest at 509.73

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.58 times

OPERATING PROFIT(Q)

Lowest at CNY 177.84 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.13 %

PRE-TAX PROFIT(Q)

Lowest at CNY 147.93 MM

NET PROFIT(Q)

Lowest at CNY 73.98 MM

Here's what is working for Zhejiang Int'l Group Co., Ltd.

Operating Cash Flow

Highest at CNY 635.38 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -12.96% (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 Int'l Group Co., Ltd.

Interest Coverage Ratio

Lowest at 509.73

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 73.98 MM has Fallen at -42.72%

over average net sales of the previous four periods of CNY 129.16 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 177.84 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.13 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 147.93 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 73.98 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 7.58 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio