Zhejiang Yunzhongma 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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Yunzhongma Co., Ltd.

Why is Zhejiang Yunzhongma Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 12.32% and Operating profit at -19.58% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(9M) At CNY 48.25 MM has Grown at -28.22%
INTEREST COVERAGE RATIO(Q) Lowest at 499.17
RAW MATERIAL COST(Y) Grown by 14% (YoY)

With ROE of 4.74%, it has a fair valuation with a 4.21 Price to Book Value

Over the past year, while the stock has generated a return of 66.99%, its profits have fallen by -47%
At the current price, the company has a high dividend yield of 0.1

Market Beating performance in long term as well as near term

Along with generating 66.99% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Yunzhongma Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Zhejiang Yunzhongma Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Yunzhongma Co., Ltd.

41.36%

2.30

60.64%

China Shanghai Composite

16.78%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.68%

EBIT Growth (5y)

8.30%

EBIT to Interest (avg)

7.51

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

1.03

Tax Ratio

8.43%

Dividend Payout Ratio

30.24%

Pledged Shares

Institutional Holding

ROCE (avg)

6.09%

ROE (avg)

7.00%

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

1.10

EV to EBIT

25.48

EV to EBITDA

13.97

EV to Capital Employed

1.07

EV to Sales

0.84

PEG Ratio

0.87

Dividend Yield

0.51%

ROCE (Latest)

4.18%

ROE (Latest)

5.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 551.11 MM

NET PROFIT(HY)

At CNY 45.11 MM has Grown at 80.08%

RAW MATERIAL COST(Y)

Fallen by -43.96% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 15.29 times

-7What is not working for the Company

INTEREST(Q)

At CNY 3.99 MM has Grown at 26.53%

INTEREST COVERAGE RATIO(Q)

Lowest at 473.7

NET SALES(Q)

Lowest at CNY 565.26 MM

OPERATING PROFIT(Q)

Lowest at CNY 18.91 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.34 %

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

Operating Cash Flow

Highest at CNY 551.11 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)

Net Profit

At CNY 45.11 MM has Grown at 80.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 15.29 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -43.96% (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 Yunzhongma Co., Ltd.

Interest

At CNY 3.99 MM has Grown at 26.53%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 473.7

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 565.26 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 18.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales