Why is Zhejiang NHU Co. Ltd. ?
1
The company has declared Positive results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at CNY 8,214.79 MM
- DEBT-EQUITY RATIO (HY) Lowest at -4.26 %
- RAW MATERIAL COST(Y) Fallen by -5.1% (YoY)
2
With ROE of 24.27%, it has a very attractive valuation with a 2.39 Price to Book Value
- Over the past year, while the stock has generated a return of 52.43%, its profits have risen by 116.6% ; the PEG ratio of the company is 0.1
- At the current price, the company has a high dividend yield of 3
3
Consistent Returns over the last 3 years
- Along with generating 52.43% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods
How much should you buy?
- Overall Portfolio exposure to Zhejiang NHU Co. Ltd. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Zhejiang NHU Co. Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Zhejiang NHU Co. Ltd.
52.96%
2.88
28.93%
China Shanghai Composite
17.92%
1.11
14.98%
Quality key factors
Factor
Value
Sales Growth (5y)
19.25%
EBIT Growth (5y)
15.64%
EBIT to Interest (avg)
16.35
Debt to EBITDA (avg)
0.62
Net Debt to Equity (avg)
0.01
Sales to Capital Employed (avg)
0.50
Tax Ratio
13.87%
Dividend Payout Ratio
26.19%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
17.26%
ROE (avg)
16.94%
Valuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
2.39
EV to EBIT
8.89
EV to EBITDA
6.95
EV to Capital Employed
2.37
EV to Sales
3.24
PEG Ratio
0.08
Dividend Yield
2.97%
ROCE (Latest)
26.61%
ROE (Latest)
24.27%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 8,214.79 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -4.26 %
RAW MATERIAL COST(Y)
Fallen by -5.1% (YoY
CASH AND EQV(HY)
Highest at CNY 18,561.23 MM
-5What is not working for the Company
OPERATING PROFIT(Q)
Lowest at CNY 1,937.15 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 34.96 %
PRE-TAX PROFIT(Q)
Lowest at CNY 1,959.98 MM
NET PROFIT(Q)
Lowest at CNY 1,701.52 MM
EPS(Q)
Lowest at CNY 0.56
Here's what is working for Zhejiang NHU Co. Ltd.
Operating Cash Flow
Highest at CNY 8,214.79 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Debt-Equity Ratio
Lowest at -4.26 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Cash and Eqv
Highest at CNY 18,561.23 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -5.1% (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 NHU Co. Ltd.
Operating Profit
Lowest at CNY 1,937.15 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 34.96 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY 1,959.98 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY 1,701.52 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY 0.56
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)






