Zhejiang Jihua Group Co., Ltd. (603980) 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 Jihua Group Co., Ltd.

Why is Zhejiang Jihua Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.71%

The company has been able to generate a Return on Capital Employed (avg) of 0.71% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -4.02% and Operating profit at -191.04% over the last 5 years

The company has declared negative results in Mar'2025 after 2 consecutive positive quarters

NET SALES(Q) Fallen at -11.53%
OPERATING PROFIT(Q) Lowest at CNY -31.36 MM
OPERATING PROFIT MARGIN(Q) Lowest at -9.04 %

With ROE of 1.27%, it has a very attractive valuation with a 0.96 Price to Book Value

Over the past year, while the stock has generated a return of 50.72%, its profits have risen by 154.2% ; the PEG ratio of the company is 0.5

Market Beating performance in long term as well as near term

Along with generating 50.72% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Jihua Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Zhejiang Jihua Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Jihua Group Co., Ltd.

38.03%

1.73

51.72%

China Shanghai Composite

15.17%

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)

-4.02%

EBIT Growth (5y)

-191.04%

EBIT to Interest (avg)

-18.94

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

0.40

Tax Ratio

31.10%

Dividend Payout Ratio

28.15%

Pledged Shares

Institutional Holding

ROCE (avg)

0.71%

ROE (avg)

1.23%

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

0.96

EV to EBIT

-70.22

EV to EBITDA

15.91

EV to Capital Employed

0.93

EV to Sales

1.22

PEG Ratio

0.49

Dividend Yield

1.31%

ROCE (Latest)

-1.33%

ROE (Latest)

1.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

12What is working for the Company

NET PROFIT(HY)

At CNY 3.46 MM has Grown at 317.09%

OPERATING CASH FLOW(Y)

Highest at CNY 182.24 MM

ROCE(HY)

Highest at 1.46%

DEBT-EQUITY RATIO (HY)

Lowest at -37.86 %

RAW MATERIAL COST(Y)

Fallen by -23.37% (YoY

-17What is not working for the Company

NET SALES(Q)

Fallen at -11.53%

OPERATING PROFIT(Q)

Lowest at CNY -31.36 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -9.04 %

PRE-TAX PROFIT(Q)

Lowest at CNY -20.43 MM

NET PROFIT(Q)

Lowest at CNY -15.79 MM

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

Operating Cash Flow

Highest at CNY 182.24 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)

Debt-Equity Ratio

Lowest at -37.86 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -23.37% (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 Jihua Group Co., Ltd.

Pre-Tax Profit

At CNY -20.43 MM has Fallen at -532.49%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -15.79 MM has Fallen at -1,018.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Fallen at -11.53%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -31.36 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -9.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -20.43 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 -15.79 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)