Zhejiang Zhengguang Industrial 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 Zhengguang Industrial Co., Ltd.

Why is Zhejiang Zhengguang Industrial Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.04% and Operating profit at 14.81% over the last 5 years

Flat results in Mar 26

ROCE(HY) Lowest at 4.82%
DEBT-EQUITY RATIO (HY) Highest at -32.03 %
NET SALES(Q) Lowest at CNY 126.2 MM

With ROE of 5.23%, it has a fair valuation with a 2.74 Price to Book Value

Over the past year, while the stock has generated a return of 51.79%, its profits have risen by 3% ; the PEG ratio of the company is 17.4
At the current price, the company has a high dividend yield of 0.2

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Zhejiang Zhengguang Industrial Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Zhengguang Industrial Co., Ltd.

51.79%

1.78

52.41%

China Shanghai Composite

20.96%

1.56

13.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.04%

EBIT Growth (5y)

14.81%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

0.30

Tax Ratio

12.87%

Dividend Payout Ratio

34.67%

Pledged Shares

Institutional Holding

ROCE (avg)

21.78%

ROE (avg)

12.28%

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

2.74

EV to EBIT

48.75

EV to EBITDA

39.94

EV to Capital Employed

3.74

EV to Sales

7.19

PEG Ratio

17.35

Dividend Yield

0.15%

ROCE (Latest)

7.68%

ROE (Latest)

5.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 123.16 MM

RAW MATERIAL COST(Y)

Fallen by -10.62% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.47 times

-15What is not working for the Company

ROCE(HY)

Lowest at 4.82%

DEBT-EQUITY RATIO (HY)

Highest at -32.03 %

NET SALES(Q)

Lowest at CNY 126.2 MM

OPERATING PROFIT(Q)

Lowest at CNY 17.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.49 %

PRE-TAX PROFIT(Q)

Lowest at CNY 18.57 MM

NET PROFIT(Q)

Lowest at CNY 17.06 MM

EPS(Q)

Lowest at CNY 0.13

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

Operating Cash Flow

Highest at CNY 123.16 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Highest at 4.47 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 -10.62% (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 Zhengguang Industrial Co., Ltd.

Net Sales

At CNY 126.2 MM has Fallen at -22.46%

over average net sales of the previous four periods of CNY 162.74 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at -32.03 % and Grown

In each half year 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

Net Sales

Lowest at CNY 126.2 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 17.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 13.49 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 18.57 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 18.57 MM has Fallen at -32.95%

over average net sales of the previous four periods of CNY 27.69 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 17.06 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

At CNY 17.06 MM has Fallen at -31.04%

over average net sales of the previous four periods of CNY 24.74 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.13

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)