Zhejiang Zhaolong Interconnect Technology 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 Zhaolong Interconnect Technology Co., Ltd.

Why is Zhejiang Zhaolong Interconnect Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 11.34% and Operating profit at 28.56% over the last 5 years

The company has declared positive results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 270.09 MM
INTEREST COVERAGE RATIO(Q) Highest at 105,432.64
NET PROFIT(HY) At CNY 140.9 MM has Grown at 47.13%

With ROE of 9.31%, it has a very expensive valuation with a 5.56 Price to Book Value

Over the past year, while the stock has generated a return of 6.34%, its profits have risen by 46.8% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 6.34% in the last 1 year, much lower than market (China Shanghai Composite) returns of 17.19%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Zhaolong Interconnect Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Zhejiang Zhaolong Interconnect Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Zhaolong Interconnect Technology Co., Ltd.

6.34%

1.06

55.58%

China Shanghai Composite

17.19%

1.27

13.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.34%

EBIT Growth (5y)

28.56%

EBIT to Interest (avg)

87.99

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

1.34

Tax Ratio

9.31%

Dividend Payout Ratio

21.57%

Pledged Shares

Institutional Holding

ROCE (avg)

11.20%

ROE (avg)

11.09%

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

5.56

EV to EBIT

48.38

EV to EBITDA

42.01

EV to Capital Employed

10.87

EV to Sales

6.09

PEG Ratio

0.22

Dividend Yield

ROCE (Latest)

22.46%

ROE (Latest)

9.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 270.09 MM

INTEREST COVERAGE RATIO(Q)

Highest at 105,432.64

NET PROFIT(HY)

At CNY 140.9 MM has Grown at 47.13%

RAW MATERIAL COST(Y)

Fallen by -24.27% (YoY

CASH AND EQV(HY)

Highest at CNY 2,908.53 MM

DEBT-EQUITY RATIO (HY)

Lowest at -53.75 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.75 times

-2What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.88 times

Here's what is working for Zhejiang Zhaolong Interconnect Technology Co., Ltd.

Interest Coverage Ratio

Highest at 105,432.64 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at CNY 270.09 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 140.9 MM has Grown at 47.13%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 2,908.53 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -53.75 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 5.75 times

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 -24.27% (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 Zhaolong Interconnect Technology Co., Ltd.

Inventory Turnover Ratio

Lowest at 4.88 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio