Zhejiang Shuanghuan Driveline Co., Ltd. (002472) 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 Shuanghuan Driveline Co., Ltd.

Why is Zhejiang Shuanghuan Driveline Co., Ltd. ?

Flat results in Mar 26

INTEREST(HY) At CNY 46.06 MM has Grown at 60.66%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.75 times
INTEREST COVERAGE RATIO(Q) Lowest at 1,656.98

With ROE of 13.00%, it has a fair valuation with a 3.30 Price to Book Value

Over the past year, while the stock has generated a return of 37.05%, its profits have risen by 19.2% ; the PEG ratio of the company is 1.3
At the current price, the company has a high dividend yield of 0.9

Consistent Returns over the last 3 years

Along with generating 37.05% returns in the last 1 year, the stock has outperformed 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 Shuanghuan Driveline 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 Shuanghuan Driveline Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Shuanghuan Driveline Co., Ltd.

37.05%

2.07

41.00%

China Shanghai Composite

17.97%

1.33

13.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.53%

EBIT Growth (5y)

40.75%

EBIT to Interest (avg)

9.55

Debt to EBITDA (avg)

2.33

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

0.68

Tax Ratio

11.95%

Dividend Payout Ratio

30.69%

Pledged Shares

Institutional Holding

ROCE (avg)

7.79%

ROE (avg)

9.05%

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

3.30

EV to EBIT

25.48

EV to EBITDA

17.10

EV to Capital Employed

2.86

EV to Sales

3.98

PEG Ratio

1.32

Dividend Yield

0.90%

ROCE (Latest)

11.23%

ROE (Latest)

13.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,724.65 MM

ROCE(HY)

Highest at 13.09%

RAW MATERIAL COST(Y)

Fallen by -7.97% (YoY

CASH AND EQV(HY)

Highest at CNY 5,517.86 MM

DEBT-EQUITY RATIO (HY)

Lowest at 23.54 %

-16What is not working for the Company

INTEREST(HY)

At CNY 46.06 MM has Grown at 60.66%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.75 times

INTEREST COVERAGE RATIO(Q)

Lowest at 1,656.98

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.14 times

NET SALES(Q)

At CNY 2,095.47 MM has Fallen at -8.01%

OPERATING PROFIT(Q)

Lowest at CNY 329.76 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.74 %

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

Operating Cash Flow

Highest at CNY 2,724.65 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)

Cash and Eqv

Highest at CNY 5,517.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 23.54 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -7.97% (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 Shuanghuan Driveline Co., Ltd.

Interest

At CNY 46.06 MM has Grown at 60.66%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,656.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 2.75 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

Net Sales

At CNY 2,095.47 MM has Fallen at -8.01%

over average net sales of the previous four periods of CNY 2,278.04 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 329.76 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 15.74 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio