Zhejiang Jingu Co., Ltd. (002488) 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 Jingu Co., Ltd.

Why is Zhejiang Jingu Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.65%

The company has been able to generate a Return on Capital Employed (avg) of 0.65% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.47% and Operating profit at 36.40% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 1.77% signifying low profitability per unit of shareholders funds

With a growth in Net Profit of 199.86%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CNY 271.31 MM
PRE-TAX PROFIT(Q) At CNY 45.27 MM has Grown at 665.19%
NET SALES(HY) At CNY 1,707.97 MM has Grown at 26.41%

With ROE of 1.86%, it has a very expensive valuation with a 3.44 Price to Book Value

Over the past year, while the stock has generated a return of -21.93%, its profits have fallen by -3.2%
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Jingu Co., Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

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

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

Is Zhejiang Jingu Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Jingu Co., Ltd.

-21.93%

3.59

40.91%

China Shanghai Composite

20.36%

1.53

13.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.47%

EBIT Growth (5y)

36.40%

EBIT to Interest (avg)

-0.81

Debt to EBITDA (avg)

11.18

Net Debt to Equity (avg)

0.56

Sales to Capital Employed (avg)

0.52

Tax Ratio

39.37%

Dividend Payout Ratio

21.98%

Pledged Shares

Institutional Holding

ROCE (avg)

0.65%

ROE (avg)

1.77%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

185

Industry P/E

Price to Book Value

3.44

EV to EBIT

79.31

EV to EBITDA

48.11

EV to Capital Employed

2.45

EV to Sales

4.08

PEG Ratio

Dividend Yield

0.08%

ROCE (Latest)

3.09%

ROE (Latest)

1.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

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

24What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 271.31 MM

PRE-TAX PROFIT(Q)

At CNY 45.27 MM has Grown at 665.19%

NET SALES(HY)

At CNY 1,707.97 MM has Grown at 26.41%

ROCE(HY)

Highest at 1.64%

RAW MATERIAL COST(Y)

Fallen by -37.72% (YoY

NET PROFIT(Q)

Highest at CNY 23.21 MM

EPS(Q)

Highest at CNY 0.02

-7What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.43 times

INTEREST(Q)

At CNY 23.1 MM has Grown at inf%

DEBT-EQUITY RATIO (HY)

Highest at 78.45 %

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

Pre-Tax Profit

At CNY 45.27 MM has Grown at 665.19%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 271.31 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)

Net Profit

At CNY 23.21 MM has Grown at 199.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 1,707.97 MM has Grown at 26.41%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 23.21 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -37.72% (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 Jingu Co., Ltd.

Interest

At CNY 23.1 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 4.43 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Debt-Equity Ratio

Highest at 78.45 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio