Zhejiang Meida Industrial Co., Ltd. (002677) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Meida Industrial Co., Ltd.

Why is Zhejiang Meida Industrial Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -17.51% and Operating profit at -51.93% over the last 5 years

With a fall in Net Sales of -37.14%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 6 consecutive quarters
INTEREST(HY) At CNY 0.1 MM has Grown at 20.16%
PRE-TAX PROFIT(Q) At CNY 9.12 MM has Fallen at -71.25%
NET PROFIT(Q) At CNY 7.79 MM has Fallen at -71.77%

With ROE of 1.68%, it has a very expensive valuation with a 2.30 Price to Book Value

Over the past year, while the stock has generated a return of 3.18%, its profits have fallen by -92.8%
At the current price, the company has a high dividend yield of 5.7

Underperformed the market in the last 1 year

The stock has generated a return of 3.18% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%

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 Electronics & Appliances)

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

Is Zhejiang Meida Industrial Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Meida Industrial Co., Ltd.

-0.88%

-0.35

33.47%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-17.51%

EBIT Growth (5y)

-51.93%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

0.71

Tax Ratio

8.59%

Dividend Payout Ratio

175.44%

Pledged Shares

Institutional Holding

ROCE (avg)

54.93%

ROE (avg)

22.43%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

137

Industry P/E

Price to Book Value

2.30

EV to EBIT

218.45

EV to EBITDA

38.14

EV to Capital Employed

3.14

EV to Sales

4.55

PEG Ratio

Dividend Yield

5.74%

ROCE (Latest)

1.44%

ROE (Latest)

1.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-41What is not working for the Company

INTEREST(HY)

At CNY 0.1 MM has Grown at 20.16%

PRE-TAX PROFIT(Q)

At CNY 9.12 MM has Fallen at -71.25%

NET PROFIT(Q)

At CNY 7.79 MM has Fallen at -71.77%

OPERATING CASH FLOW(Y)

Lowest at CNY 55.97 MM

ROCE(HY)

Lowest at 2.18%

OPERATING PROFIT(Q)

Lowest at CNY 6.88 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.03 %

RAW MATERIAL COST(Y)

Grown by 6.98% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.19%

NET SALES(Q)

Lowest at CNY 97.91 MM

Here's what is not working for Zhejiang Meida Industrial Co., Ltd.

Interest

At CNY 0.1 MM has Grown at 20.16%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 97.91 MM has Fallen at -54.53%

over average net sales of the previous four periods of CNY 215.34 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 9.12 MM has Fallen at -71.25%

over average net sales of the previous four periods of CNY 31.73 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 7.79 MM has Fallen at -71.77%

over average net sales of the previous four periods of CNY 27.61 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 6.88 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.03 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Cash Flow

Lowest at CNY 55.97 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 97.91 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 7.19%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 6.98% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales