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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Yinlun Machinery Co., Ltd.

Why is Zhejiang Yinlun Machinery 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 18.63% and Operating profit at 21.37% 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 10.84% signifying low profitability per unit of shareholders funds

Flat results in Mar 25

INTEREST(Q) At CNY 26.27 MM has Grown at 15.42%
INTEREST COVERAGE RATIO(Q) Lowest at 931.48
OPERATING PROFIT(Q) Lowest at CNY 244.7 MM

With ROE of 14.06%, it has a fair valuation with a 4.80 Price to Book Value

Over the past year, while the stock has generated a return of 68.83%, its profits have risen by 9.9% ; the PEG ratio of the company is 3.5
At the current price, the company has a high dividend yield of 0.3

Consistent Returns over the last 3 years

Along with generating 68.83% 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 Yinlun Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

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

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Yinlun Machinery Co., Ltd.

99.08%

1.59

57.36%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.63%

EBIT Growth (5y)

21.37%

EBIT to Interest (avg)

5.90

Debt to EBITDA (avg)

3.22

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

0.97

Tax Ratio

11.36%

Dividend Payout Ratio

12.46%

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

4.80

EV to EBIT

37.38

EV to EBITDA

21.63

EV to Capital Employed

3.39

EV to Sales

2.57

PEG Ratio

3.45

Dividend Yield

0.29%

ROCE (Latest)

9.08%

ROE (Latest)

14.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

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 1,709.79 MM

DEBT-EQUITY RATIO (HY)

Lowest at 57.06 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.95%

CASH AND EQV(HY)

Highest at CNY 5,432.12 MM

PRE-TAX PROFIT(Q)

Highest at CNY 275.4 MM

-6What is not working for the Company

INTEREST(Q)

At CNY 26.27 MM has Grown at 15.42%

INTEREST COVERAGE RATIO(Q)

Lowest at 931.48

OPERATING PROFIT(Q)

Lowest at CNY 244.7 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.21 %

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

Debt-Equity Ratio

Lowest at 57.06 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.95% 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

Operating Cash Flow

Highest at CNY 1,709.79 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 275.4 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 5,432.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Zhejiang Yinlun Machinery Co., Ltd.

Interest

At CNY 26.27 MM has Grown at 15.42%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 931.48

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 244.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.21 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales