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. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 5.56% and Operating profit at 7.99% over the last 5 years
The company is Net-Debt Free
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 5.56% and Operating profit at 7.99% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At CNY 82.19 MM has Grown at 13.59%
ROCE(HY) Lowest at 9.48%
INTEREST COVERAGE RATIO(Q) Lowest at 566.78

With ROE of 10.88%, it has a fair valuation with a 1.13 Price to Book Value

Over the past year, while the stock has generated a return of -13.71%, its profits have fallen by -2.4%
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.71% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Int'l Group Co., Ltd.

-13.71%

-0.24

37.13%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.56%

EBIT Growth (5y)

7.99%

EBIT to Interest (avg)

4.91

Debt to EBITDA (avg)

4.05

Net Debt to Equity (avg)

0.97

Sales to Capital Employed (avg)

3.40

Tax Ratio

24.16%

Dividend Payout Ratio

36.88%

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

1.13

EV to EBIT

11.52

EV to EBITDA

9.65

EV to Capital Employed

1.08

EV to Sales

0.31

PEG Ratio

Dividend Yield

ROCE (Latest)

9.34%

ROE (Latest)

10.88%

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

No Trend

OBV

No Trend

Mildly 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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,614.78 MM

RAW MATERIAL COST(Y)

Fallen by -8.78% (YoY

CASH AND EQV(HY)

Highest at CNY 3,619.73 MM

-12What is not working for the Company

INTEREST(HY)

At CNY 82.19 MM has Grown at 13.59%

ROCE(HY)

Lowest at 9.48%

INTEREST COVERAGE RATIO(Q)

Lowest at 566.78

OPERATING PROFIT(Q)

Lowest at CNY 151.38 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.76 %

PRE-TAX PROFIT(Q)

Lowest at CNY 133.63 MM

NET PROFIT(Q)

At CNY 80.15 MM has Fallen at -36.03%

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

Operating Cash Flow

Highest at CNY 1,614.78 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 3,619.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -8.78% (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

At CNY 82.19 MM has Grown at 13.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 566.78

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 151.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 133.63 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 133.63 MM has Fallen at -34.43%

over average net sales of the previous four periods of CNY 203.79 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 80.15 MM has Fallen at -36.03%

over average net sales of the previous four periods of CNY 125.31 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Non Operating Income

Highest at CNY 0.07 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income