Zhejiang Meili High Technology Co., Ltd. (300611) 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 Meili High Technology Co., Ltd.

Why is Zhejiang Meili High Technology Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 25.20% and Operating profit at 35.91% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.59% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 9 consecutive quarters

ROCE(HY) Highest at 12.66%
RAW MATERIAL COST(Y) Fallen by -23.37% (YoY)
NET SALES(Q) Highest at CNY 479.61 MM

With ROE of 11.84%, it has a expensive valuation with a 3.83 Price to Book Value

Over the past year, while the stock has generated a return of 152.79%, its profits have risen by 116.8% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0.5

Market Beating performance in long term as well as near term

Along with generating 152.79% 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 Meili High Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Zhejiang Meili High Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Meili High Technology Co., Ltd.

134.22%

3.41

77.72%

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)

25.20%

EBIT Growth (5y)

35.91%

EBIT to Interest (avg)

3.26

Debt to EBITDA (avg)

3.40

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

0.86

Tax Ratio

4.52%

Dividend Payout Ratio

23.08%

Pledged Shares

Institutional Holding

ROCE (avg)

3.83%

ROE (avg)

4.59%

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

3.83

EV to EBIT

35.60

EV to EBITDA

19.38

EV to Capital Employed

3.10

EV to Sales

2.80

PEG Ratio

0.28

Dividend Yield

0.54%

ROCE (Latest)

8.72%

ROE (Latest)

11.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

19What is working for the Company

ROCE(HY)

Highest at 12.66%

RAW MATERIAL COST(Y)

Fallen by -23.37% (YoY

NET SALES(Q)

Highest at CNY 479.61 MM

OPERATING PROFIT(Q)

Highest at CNY 80.3 MM

PRE-TAX PROFIT(Q)

Highest at CNY 51.88 MM

NET PROFIT(Q)

Highest at CNY 46.42 MM

EPS(Q)

Highest at CNY 0.22

-2What is not working for the Company

INTEREST(Q)

At CNY 4.58 MM has Grown at 13.97%

Here's what is working for Zhejiang Meili High Technology Co., Ltd.

Net Sales

Highest at CNY 479.61 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 80.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 51.88 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 51.88 MM has Grown at 62.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 46.42 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.22

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

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 Meili High Technology Co., Ltd.

Interest

At CNY 4.58 MM has Grown at 13.97%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)