Zhejiang Zheneng Electric Power Co., Ltd. (600023) 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 Zheneng Electric Power Co., Ltd.

Why is Zhejiang Zheneng Electric Power Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.67%

The company has been able to generate a Return on Capital Employed (avg) of 3.67% signifying low profitability per unit of total capital (equity and debt)

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 9.34% and Operating profit at 1.58% 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 6.71% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.34% and Operating profit at 1.58% over the last 5 years

Flat results in Sep 25

NET SALES(HY) At CNY 41,212.22 MM has Grown at -10.94%
DEBTORS TURNOVER RATIO(HY) Lowest at 6 times

With ROE of 11.10%, it has a very attractive valuation with a 0.90 Price to Book Value

Over the past year, while the stock has generated a return of -1.64%, its profits have fallen by -11.7%
At the current price, the company has a high dividend yield of 5.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Zheneng Electric Power Co., Ltd. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

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

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

Is Zhejiang Zheneng Electric Power Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Zheneng Electric Power Co., Ltd.

-4.84%

-1.07

20.40%

China Shanghai Composite

15.17%

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)

9.34%

EBIT Growth (5y)

1.58%

EBIT to Interest (avg)

0.99

Debt to EBITDA (avg)

7.75

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

0.75

Tax Ratio

18.94%

Dividend Payout Ratio

50.16%

Pledged Shares

Institutional Holding

ROCE (avg)

3.67%

ROE (avg)

6.71%

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

0.90

EV to EBIT

15.81

EV to EBITDA

7.14

EV to Capital Employed

0.93

EV to Sales

1.11

PEG Ratio

Dividend Yield

5.85%

ROCE (Latest)

5.86%

ROE (Latest)

11.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly 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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -12.1% (YoY

CASH AND EQV(HY)

Highest at CNY 41,019.03 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 15.44 times

PRE-TAX PROFIT(Q)

Highest at CNY 2,882.98 MM

-7What is not working for the Company

NET SALES(HY)

At CNY 41,212.22 MM has Grown at -10.94%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6 times

Here's what is working for Zhejiang Zheneng Electric Power Co., Ltd.

Pre-Tax Profit

Highest at CNY 2,882.98 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 2,882.98 MM has Grown at 97.23%

over average net sales of the previous four periods of CNY 1,461.74 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 41,019.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 15.44 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 -12.1% (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 Zheneng Electric Power Co., Ltd.

Net Sales

At CNY 41,212.22 MM has Grown at -10.94%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 6 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio