Zhejiang XCC Group Co., Ltd. (603667) 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 XCC Group Co., Ltd.

Why is Zhejiang XCC Group 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 15.76% and Operating profit at 0.40% 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 5.22% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 15.76% and Operating profit at 0.40% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At CNY 30.98 MM has Grown at -47.21%
INTEREST(HY) At CNY 28.62 MM has Grown at 129.08%
ROCE(HY) Lowest at 3.1%

With ROE of 3.22%, it has a very expensive valuation with a 1.81 Price to Book Value

Over the past year, while the stock has generated a return of 107.41%, its profits have fallen by -32.6%
At the current price, the company has a high dividend yield of 0.8

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 Industrial Manufacturing)

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

Is Zhejiang XCC Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang XCC Group Co., Ltd.

107.41%

2.32

65.41%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.76%

EBIT Growth (5y)

0.40%

EBIT to Interest (avg)

3.18

Debt to EBITDA (avg)

2.97

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

0.77

Tax Ratio

14.89%

Dividend Payout Ratio

48.00%

Pledged Shares

Institutional Holding

ROCE (avg)

4.24%

ROE (avg)

5.22%

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

1.81

EV to EBIT

57.73

EV to EBITDA

21.66

EV to Capital Employed

1.63

EV to Sales

1.85

PEG Ratio

Dividend Yield

0.82%

ROCE (Latest)

2.82%

ROE (Latest)

3.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

NET SALES(HY)

At CNY 1,665.34 MM has Grown at 23.38%

RAW MATERIAL COST(Y)

Fallen by -8.96% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3%

PRE-TAX PROFIT(Q)

At CNY 42.22 MM has Grown at 59.17%

NET PROFIT(Q)

Highest at CNY 37.85 MM

EPS(Q)

Highest at CNY 0.1

-20What is not working for the Company

NET PROFIT(HY)

At CNY 30.98 MM has Grown at -47.21%

INTEREST(HY)

At CNY 28.62 MM has Grown at 129.08%

ROCE(HY)

Lowest at 3.1%

OPERATING PROFIT(Q)

Lowest at CNY 35.95 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.07 %

Here's what is working for Zhejiang XCC Group Co., Ltd.

Net Sales

At CNY 1,665.34 MM has Grown at 23.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 42.22 MM has Grown at 59.17%

over average net sales of the previous four periods of CNY 26.53 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 37.85 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 37.85 MM has Grown at 65.69%

over average net sales of the previous four periods of CNY 22.84 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debtors Turnover Ratio

Highest at 3%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -8.96% (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 XCC Group Co., Ltd.

Interest

At CNY 28.62 MM has Grown at 129.08%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 35.95 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales