Zhejiang Jiecang Linear Motion Technology Co. Ltd. (603583) 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 Jiecang Linear Motion Technology Co. Ltd.

Why is Zhejiang Jiecang Linear Motion Technology Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 18.70% and Operating profit at -5.83% over the last 5 years

Flat results in Sep 25

DEBTORS TURNOVER RATIO(HY) Lowest at 5.82 times
INTEREST(Q) Highest at CNY 8.84 MM

With ROE of 8.11%, it has a fair valuation with a 3.59 Price to Book Value

Over the past year, while the stock has generated a return of -8.52%, its profits have risen by 29.2% ; the PEG ratio of the company is 1.5
At the current price, the company has a high dividend yield of 0.7

Below par performance in long term as well as near term

Along with generating -8.52% 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 Industrial Manufacturing)

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

Is Zhejiang Jiecang Linear Motion Technology Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Jiecang Linear Motion Technology Co. Ltd.

-36.76%

1.96

45.12%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.25%

EBIT Growth (5y)

-3.39%

EBIT to Interest (avg)

39.04

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

0.65

Tax Ratio

13.32%

Dividend Payout Ratio

29.88%

Pledged Shares

Institutional Holding

ROCE (avg)

12.03%

ROE (avg)

7.77%

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

2.14

EV to EBIT

24.97

EV to EBITDA

16.29

EV to Capital Employed

2.41

EV to Sales

2.28

PEG Ratio

25.00

Dividend Yield

1.18%

ROCE (Latest)

9.65%

ROE (Latest)

7.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -14.94% (YoY

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 458.84 MM

PRE-TAX PROFIT(Q)

At CNY 58.98 MM has Fallen at -54.72%

NET PROFIT(Q)

At CNY 48.84 MM has Fallen at -56.52%

INTEREST(9M)

At CNY 19.3 MM has Grown at 6.3%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,440.49

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.79 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.53 times

NET SALES(Q)

Lowest at CNY 947.7 MM

OPERATING PROFIT(Q)

Lowest at CNY 75.19 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.93 %

Here's what is working for Zhejiang Jiecang Linear Motion Technology Co. Ltd.

Raw Material Cost

Fallen by -14.94% (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 Jiecang Linear Motion Technology Co. Ltd.

Pre-Tax Profit

At CNY 58.98 MM has Fallen at -54.72%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 48.84 MM has Fallen at -56.52%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 458.84 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)

Interest Coverage Ratio

Lowest at 1,440.49

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 19.3 MM has Grown at 6.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 947.7 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 75.19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.93 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 2.79 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 5.53 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio