Zhejiang Zhaofeng Mechanical & Electronic Co., Ltd. (300695) 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 Zhaofeng Mechanical & Electronic Co., Ltd.

Why is Zhejiang Zhaofeng Mechanical & Electronic Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.51% and Operating profit at -12.58% over the last 5 years

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

DEBT-EQUITY RATIO (HY) Highest at -45.43 %
OPERATING PROFIT(Q) Lowest at CNY 21.2 MM
OPERATING PROFIT MARGIN(Q) Lowest at 12.75 %

With ROE of 5.26%, it has a expensive valuation with a 4.00 Price to Book Value

Over the past year, while the stock has generated a return of 26.84%, its profits have fallen by -14.6%
At the current price, the company has a high dividend yield of 0.4

Market Beating Performance

The stock has generated a return of 26.84% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.17%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Zhaofeng Mechanical & Electronic 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 Zhaofeng Mechanical & Electronic Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Zhaofeng Mechanical & Electronic Co., Ltd.

32.95%

2.17

74.91%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.51%

EBIT Growth (5y)

-12.58%

EBIT to Interest (avg)

79.65

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

0.27

Tax Ratio

14.11%

Dividend Payout Ratio

31.86%

Pledged Shares

Institutional Holding

ROCE (avg)

10.07%

ROE (avg)

6.18%

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

4.00

EV to EBIT

91.26

EV to EBITDA

59.79

EV to Capital Employed

7.22

EV to Sales

13.43

PEG Ratio

Dividend Yield

0.43%

ROCE (Latest)

7.91%

ROE (Latest)

5.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 174.27 MM

ROCE(HY)

Highest at 13.01%

EPS(Q)

Highest at CNY 2.29

-8What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -45.43 %

OPERATING PROFIT(Q)

Lowest at CNY 21.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.75 %

PRE-TAX PROFIT(Q)

Lowest at CNY 21.48 MM

NET PROFIT(Q)

Lowest at CNY 18.8 MM

Here's what is working for Zhejiang Zhaofeng Mechanical & Electronic Co., Ltd.

Operating Cash Flow

Highest at CNY 174.27 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

EPS

Highest at CNY 2.29

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Zhejiang Zhaofeng Mechanical & Electronic Co., Ltd.

Operating Profit

Lowest at CNY 21.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.75 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 21.48 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -29.25%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 18.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at -45.43 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio