Zhejiang Provincial New Energy Investment Group Co., Ltd. () 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 Provincial New Energy Investment Group Co., Ltd.

Why is Zhejiang Provincial New Energy Investment Group Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 4.72%

Poor long term growth as Net Sales has grown by an annual rate of 5.47% and Operating profit at -14.14% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
OPERATING CASH FLOW(Y) Highest at CNY 3,099.49 MM
INVENTORY TURNOVER RATIO(HY) Highest at 280.19%

With ROE of 3.08%, it has a expensive valuation with a 1.39 Price to Book Value

Over the past year, while the stock has generated a return of -6.95%, its profits have fallen by -50%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.95% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Provincial New Energy Investment Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

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

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

Is Zhejiang Provincial New Energy Investment Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Provincial New Energy Investment Group Co., Ltd.

-6.95%

-0.29

27.16%

China Shanghai Composite

12.36%

0.86

14.45%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.47%

EBIT Growth (5y)

-14.14%

EBIT to Interest (avg)

1.73

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

26.02%

Dividend Payout Ratio

30.14%

Pledged Shares

Institutional Holding

ROCE (avg)

4.72%

ROE (avg)

6.17%

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

1.39

EV to EBIT

34.70

EV to EBITDA

13.41

EV to Capital Employed

1.11

EV to Sales

10.29

PEG Ratio

Dividend Yield

ROCE (Latest)

3.20%

ROE (Latest)

3.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,099.49 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 280.19%

-21What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 62.3 MM has Fallen at -70.34%

ROCE(HY)

Lowest at 3.85%

INTEREST COVERAGE RATIO(Q)

Lowest at 123.33

NET PROFIT(Q)

At CNY 83.93 MM has Fallen at -51.46%

RAW MATERIAL COST(Y)

Grown by 24.4% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.56%

OPERATING PROFIT(Q)

Lowest at CNY 298.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 27.32 %

Here's what is working for Zhejiang Provincial New Energy Investment Group Co., Ltd.

Operating Cash Flow

Highest at CNY 3,099.49 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 280.19%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Zhejiang Provincial New Energy Investment Group Co., Ltd.

Pre-Tax Profit

At CNY 62.3 MM has Fallen at -70.34%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest Coverage Ratio

Lowest at 123.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 83.93 MM has Fallen at -51.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 298.66 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 27.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 0.56%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 24.4% (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