Zhejiang Yinlun Machinery Co., Ltd. (002126) 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 Yinlun Machinery Co., Ltd.

Why is Zhejiang Yinlun Machinery Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 18.55% and Operating profit at 22.58% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 10.84% signifying low profitability per unit of shareholders funds

With ROE of 13.82%, it has a expensive valuation with a 5.61 Price to Book Value

Over the past year, while the stock has generated a return of 110.08%, its profits have risen by 15.6% ; the PEG ratio of the company is 2.6
At the current price, the company has a high dividend yield of 0.4

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 Auto Components & Equipments)

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

Is Zhejiang Yinlun Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Yinlun Machinery Co., Ltd.

106.71%

3.12

56.03%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.55%

EBIT Growth (5y)

22.58%

EBIT to Interest (avg)

5.90

Debt to EBITDA (avg)

3.22

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

1.03

Tax Ratio

11.36%

Dividend Payout Ratio

10.40%

Pledged Shares

Institutional Holding

ROCE (avg)

7.01%

ROE (avg)

10.84%

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

5.61

EV to EBIT

38.59

EV to EBITDA

26.30

EV to Capital Employed

3.85

EV to Sales

2.85

PEG Ratio

2.61

Dividend Yield

0.42%

ROCE (Latest)

9.97%

ROE (Latest)

13.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Bullish

OBV

Mildly Bearish

Bullish

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

10What is working for the Company

NET SALES(HY)

At CNY 8,865.62 MM has Grown at 28.24%

ROCE(HY)

Highest at 13.66%

INVENTORY TURNOVER RATIO(HY)

Highest at 5.04 times

RAW MATERIAL COST(Y)

Fallen by 0.51% (YoY

CASH AND EQV(HY)

Highest at CNY 6,163.44 MM

-7What is not working for the Company

INTEREST(Q)

At CNY 26.86 MM has Grown at 118.69%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,151.71

OPERATING PROFIT(Q)

Lowest at CNY 309.33 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.29 %

NET PROFIT(Q)

Lowest at CNY 211.6 MM

Here's what is working for Zhejiang Yinlun Machinery Co., Ltd.

Net Sales

At CNY 8,865.62 MM has Grown at 28.24%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 5.04 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at CNY 6,163.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.51% (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 Yinlun Machinery Co., Ltd.

Interest

At CNY 26.86 MM has Grown at 118.69%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,151.71

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 309.33 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 211.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)